Hungary's central bank is set to keep interest rates unchanged for the seventh consecutive month, as global trade tensions continue to affect the economic outlook.

According to a Bloomberg poll of 20 economists, the National Bank of Hungary will maintain its benchmark rate at 6.5%, which is the highest in the European Union, tied with Romania. The decision will be made public at 2pm in Budapest, followed by a statement and press briefing an hour later.

Hungary must adopt a “disciplined and patient” approach to monetary policy, given the growing geopolitical tensions and heightened risks, stated Governor Mihaly Varga, who assumed leadership of the central bank in early March, during the International Monetary Fund’s spring meeting in Washington on Friday.

As one of Europe’s most open economies and increasingly reliant on Chinese investment, Hungary is especially susceptible to the trade disruptions caused by US President Donald Trump’s tariff policies, as well as to market volatility impacting the Forint, Bloomberg reports.

Vice Governor Zoltan Kurali, ahead of his first Monetary Council meeting on April 15, told lawmakers that policymakers would adhere to an “orthodox” strategy focused on maintaining price stability and financial market integrity.

Hungarian central bankers are expected to hold off on rate cuts until there is clear proof that inflation is steadily declining. Although annual inflation eased in March for the first time in six months, it remains high at 4.7%, well above the central bank’s 3% target.

Meanwhile, the Forint has recovered after falling to a three-month low against the Euro in mid-April due to tariff-related worries. Money-market traders are currently pricing in nearly 90 basis points of rate cuts by early next year, based on forward rate agreements.