HUNGARY
Analyst
Istvan Racz
Former Director, Central BankDatabanks
Recent Country Insights
The MNB base rate fell further, to 5.75% today, just as promised
HUNGARY · In Brief · 21 Jul 2026
At today's regular monthly rate-setting meeting, the Monetary Council reduced the base rate further by 25 bps, to 5.75%. This was no surprise at all; the Governor actually promised this cut a month ago, saying this step would be done, and another one of similar size was coming in August as well, ...
The constitutional amendment went through without legal problems
HUNGARY · In Brief · 19 Jul 2026
Somewhat unexpectedly, President Sulyok signed the Constitution's 17th amendment last night, without turning to the Constitutional Court on the matter, to delay the amendment's taking effect. As a consequence: - His office term will end at midnight, today. Parliament's president, Ágnes Forsthoffe...
A decisive point in the power play between Tisza and Fidesz
HUNGARY · Forecast · 17 Jul 2026
The road back to democracy and to the political mainstream of Europe remains bumpy. But with an energetic push in the area of legislative reforms and in foreign diplomacy, Tisza appears to be making real progress in this direction, and with continued massive public support and strong internationa...
A second round in the power fight between Tisza and Fidesz
HUNGARY · In Brief · 13 Jul 2026
Earlier today, Tisza’s parliamentary supermajority approved a constitutional amendment, to oust the President, get rid of the head of the Constitutional Court (and three other judges in the Court, simply by reinstating a previous rule that judges must retire over the age of 70), and cancel the Fi...
Further progress in EU relations, and a major power test is coming next week.
HUNGARY · In Brief · 10 Jul 2026
The EU Commission has been reported today as having approved Hungary's accession to the European Public Prosecutor's Office (EPPO). EPPO will have the right to investigate local wrongdoings related to the use of EU funds, continuously from now on and retroactively going back to June 2021, when it...
Oops! Inflation was down again in June
HUNGARY · In Brief · 07 Jul 2026
The headline rate of CPI-inflation fell marginally in June, to 1.7% yoy from the previous month’s 1.8%, defying analyst and MNB expectations of a small rise, to 1.9-2%. It looks lüke the strong forint is indeed very powerful, whereas normalising energy prices and the global food price cycle are a...
Leaving for a summer holiday risks missing a number of important events in today's Hungary
HUNGARY · In Brief · 03 Jul 2026
In hindsight, PM Magyar appears to have been right when he said that no one in Hungary's public service should plan a long holiday this summer. Returning from our own ten-day leave, we found an impressive list of important changes, which were the following: 1. The MNB base rate was reduced by 25 ...
A revolt at the Constitutional Court - against the Fidesz-appointed President of the Republic
HUNGARY · In Brief · 21 Jun 2026
PM Magyar has announced this afternoon that tomorrow, on Monday, June 22, the government is going to hand in to parliament its proposal to amend the Constitution once again, this time with a view to removing from office President Sulyok and seven other constitutionally independent but heavily Fid...
The government proposes to end 'protected prices' on fuels
HUNGARY · In Brief · 18 Jun 2026 · 1 response
It seems Mr. Trump's latest intermediate peace deal with Iran plays to the hands of the new government of Hungary, through its beneficial impact on global energy prices. Last night, PM Magyar announced that his government is proposing to end the existing system of 'protected' retail fuel prices, ...