HUNGARY: NBH Say Dec Inflation Report Will Be "Crucial" for 2026 MonPol Stance

Highlights from the minutes:

• Several members pointed out hat the extent of repricings in early 2026 was surrounded by significant uncertainty. The Council was in agreement that the projection in the December issue of the Inflation Report was going to be crucial from the perspective of next year’s monetary policy stance, and that tight monetary conditions had to be maintained to achieve the 3 percent inflation target in a sustainable manner.
• In the context of the November decision, the Monetary Council discussed one single option for decision, i.e. leaving the base rate unchanged.
• There was agreement that changing the forward guidance was not warranted.
• In the assessment of several members, underlying inflation was still strong.
• Regarding households’ inflation expectations, the Council emphasised that they were still not at a level that was consistent with price stability, despite the decrease observed in recent months
• Council members agreed that maintaining the stability of the foreign exchange market was of key importance in lowering inflation expectations.
• Several members pointed out that the forint market had remained stable during the year, parallel to which the domestic currency had strengthened.

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