Hungary central bank says tight monetary policy warranted

BUDAPEST: Maintaining tight monetary conditions is warranted as a restrictive policy contributes to the maintenance of financial market stability, the National Bank of Hungary said in a statement on Tuesday after keeping its base rate at 6.5%.

The bank decided to reduce the required reserve ratio from 10% to 8% as of August 1, 2025 while the non-interest bearing part of required reserves remains at 2.5% of the reserve base.

“With this technical adjustment, liquidity developments are neutral in terms of their overall impact on monetary transmission and do not imply any change in the continued tight stance of monetary policy,” the bank said.