The 17-year-old has been linked with a move away from the club this month, with Liverpool said to monitoring his progression.
However, Hughton has insisted that Redmond should stay at St Andrews to continue his development.
"With a young player like Nathan, there is always speculation," said Hughton. "His name is going to get mentioned and he is developing well here. In the games he's played, you can see what he is.
"He is a 17-year-old player that is still developing his game with the good and bad.
"That's what will happen with him. His best place to continue developing is here."
Redmond made his first Blues appearance this season.