The council also left the O/N deposit rate at 5.5% and the O/N collateralized loan rate at 7.5%. The rates mark the ends of the central bank’s symmetric interest rate corridor.
In a statement released after the meeting, the council affirmed its commitment to achieving the inflation target in a sustainable manner and pointed to the need for a “careful and patient” approach to monetary policy amid risks to the inflation environment and trade policy, and geopolitical tensions.
“Maintaining tight monetary conditions is warranted,” the policymakers said.
At a press conference after the meeting, central bank governor Mihály Varga said inflation was slowing further in April and was expected to approach the upper end of the MNB’s 3% +/-1 pp tolerance band in the coming months.
He also said inflation risks had strengthened because of the timing and contrasting effects of tariff announcements, while volatility on international financial markets had grown and risk aversion on emerging markets had increased.
Maintaining financial market stability and anchoring inflation expectations is of “key importance”, he said.
He added that the decision to keep the base rate on hold had been taken in line with the Council’s “stability-oriented” approach.
The base rate could remain at its current level “for an extended period”, he said.
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