The GBP to HUF exchange rate has faced considerable volatility recently, primarily influenced by the UK's fiscal challenges and Hungary's economic outlook. As of late September 2025, the GBP traded at 442.6 HUF, which is 2.0% below its three-month average of 451.5 HUF, indicating a noticeable dip. Analysts suggest that the GBP's struggle can be attributed to uncertainties surrounding Chancellor Rachel Reeves’s upcoming budget and her political stability, as concerns over her fiscal management weigh heavily on market sentiment.
In recent reports, concerns over UK economic data have continued to percolate, with minimal growth registered in August. This lack of robust economic indicators may maintain pressure on the pound, leaving it vulnerable as fiscal reforms are anticipated. Expectations of tax increases and spending cuts outlined for the autumn budget scheduled for November 26 could further impact investor confidence. Additionally, discussions about potential interest rate cuts as early as February 2026 may also contribute to the currency's fragility.
On the Hungarian side, the HUF has experienced significant depreciation, recently hitting an 18-month low. The National Bank of Hungary's decision to maintain its base interest rate at 6.5% in the face of ongoing inflation risks reflects the bank's commitment to stabilize the currency. However, economic uncertainty persists, with a substantial portion of large companies forecasting further HUF weakening in the near term. The combination of high inflation and reluctance to adopt the euro amid concerns over EU stability adds to the forint's vulnerabilities.
Given these dynamics, the forecast for the GBP to HUF exchange rate remains cautious, with the potential for continued pressure on the pound given the UK’s fiscal challenges and the Hungarian forint's struggle against economic headwinds. Market watchers advise keeping a close eye on upcoming economic data from both countries, as well as developments within the political landscape that could shift investor sentiment in either direction.
