Hungary's central bank eyes rate cuts as mortgage interest stop ends and deposit yields climb

Hungarian banks are offering high‑interest deposit products, with rates between 6 % and 8 % depending on the term and conditions. Notable offers include Cofidis Bank’s 6.25 % 3‑year rate and AK&H Bank’s 8 % 180‑day product.

The government plans to end the mortgage interest‑stop on 30 September 2026. The stop currently covers loans worth HUF 842 billion, affecting about 218 000 mortgage contracts – roughly a quarter of the domestic portfolio. Around 19 000 borrowers are classified as financially vulnerable. Without the stop, monthly payments could rise by 10‑12 %, for example an extra HUF 7 400 (≈11.8 %) on a typical loan.

Meanwhile the Magyar Nemzeti Bank (MNB) is considering a reduction of its base rate, which has been at 6.25 % – well above the rates of neighbouring central banks (Czech 3.5 %, Polish 3.75 %). While the ECB has recently raised rates, many analysts expect the MNB to cut rates soon, signalling a normalisation of Hungary’s previously “unorthodox” monetary stance.