MNB: price stability is the basis for sustainable growth

By: Trademagazin Date: 2025. 04. 23. 09:47

The new leadership of the central bank is committed to achieving and maintaining price stability, while improving the efficiency and practical utilization of the central bank’s work, Mihály Varga stated at the meeting of the Large Enterprise Club of the Budapest Chamber of Commerce and Industry (BKIK), according to a statement from the Hungarian National Bank (MNB) .

The central bank governor stated that the MNB will focus on fulfilling its fundamental statutory tasks in the future and will cooperate with economic and financial market players in order to support sustainable economic growth.

He drew attention to the fact that the prolongation of the Russian-Ukrainian war, the tariff war, and the stagnation of the German economy are affecting the prospects of the Hungarian economy, global economic and financial market uncertainty is increasing again, and recession and inflation risks have reappeared. In its March forecast, the central bank expected inflation between 4.5 and 5.1 percent and GDP growth between 1.9 and 2.9 percent for this year, but the global tariff war could affect this trajectory. Despite the circumstances, there is reason for optimism that the Hungarian economy has strong foundations, which is also supported by the persistently high employment of around 4.7 million people and the renewed growth in domestic consumption, he added.

According to the statement, Mihály Varga highlighted that the central bank provides the financial foundations in the economy on which all further economic activity is built. The new management of the MNB focuses on strengthening the central role of core tasks, increasing transparency and efficiency, and rationalizing other activities.