HUNGARY
Analyst
Istvan Racz
Former Director, Central BankDatabanks
Recent Country Insights
RRF funds to arrive in late 2026
HUNGARY · Report · 15 Jun 2026
In late May, the new government reached a political agreement with the EU Commission on the conditional release of nearly all of the so-far-blocked EU funds. Further efforts to actually receive the money will focus on the RRF, where an extraordinarily high time pressure remains. Here, conditions ...
Likely base rate cut in June, further major progress towards meeting conditions for EU funds
HUNGARY · Report · 10 Jun 2026
Our regular readers are most probably fully aware that we have long been hesitating to join the rapidly increasing camp of macro analysts who predict an early reduction of the MNB base rate. However, yesterday's release of the CPI-inflation data for May has changed our view in this regard. Analys...
Likely base rate cut in June, further major progress towards meeting conditions for EU funds
HUNGARY · In Brief · 10 Jun 2026
Our regular Readers are most probably fully aware that we have been hesitating for long to join the rapidly increasing camp of macro analysts who predict an early reduction of the MNB base rate. However, yesterday's release of the CPI-inflation data for May has changed our view in this regard. An...
Theft and waste of public money: another source of fiscal adjustment
HUNGARY · In Brief · 09 Jun 2026
The following story is published here to demonstrate that EU money is not the only, and perhaps not even the main, possible source of fiscal adjustment in Hungary, and to contribute to the explanation of why the Tisza government is not starting its operation by raising taxes and/or reducing spend...
PM Magyar in Berlin, Paris and the MNB headquarters
HUNGARY · In Brief · 03 Jun 2026
Immediately after his early Monday visit at the residence of President Sulyok, and the subsequent announcement that Tisza will seek the removal of eight constitutionally independent top public officials, including the President, PM Magyar went over to the MNB headquarters, to see Governor Varga t...
'Fidesz-puppets' to be sacked in about a month, PM Magyar claims
HUNGARY · In Brief · 01 Jun 2026
On May 31, the deadline set by PM Magyar for eight constitutionally independent top public officials to step down voluntarily expired. They include the President of the Republic, the Prosecutor General and the heads of the Constitutional Court, the Supreme Court, the National Bureau for the Judic...
€16.4bn of EU funds to Hungary now conditionally unblocked
HUNGARY · In Brief · 30 May 2026 · 1 response
This was announced at a press conference held by Mme von der Leyen and PM Magyar on Friday, May 29. Of the total amount, €12.9bn represents grants and a further €3.5bn represents low-cost loans. Prior to this announcement, a total of €17.6bn was known as being blocked, so not all, but most of the...
No change from the MNB and Moody's, difficult talks with EU continue, and further steps are made towards democracy
HUNGARY · In Brief · 26 May 2026
Really a lot is happening in these days. Today, the MNB kept the base rate unchanged at 6.25%. The Council discussed a hold and a rate cut scenario, Mr. Varga said after the meeting, and there was (were?) also vote(s?) supporting a rate reduction as well. Positives observed by the Council include...
Tisza has taken over in a normal way, with no disruptions
HUNGARY · Report · 21 May 2026
Tisza had set up its government cabinet and taken over the administration by early May, which represents record high speed historically. No extraordinary events or disruptions occurred, despite earlier widespread fears that Fidesz could hesitate to transfer power. However, Tisza’s takeover has...