MNB: the fight against inflation is not over yet

By: Trademagazin Date: 2025. 09. 04. 12:18

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Uncertainties in the global economy have increased further over the past year, while the engines of growth are slowing down, Mihály Varga said at the 63rd Economists’ Travelling Meeting in Veszprém, according to a statement from the central bank on Thursday. The central bank governor emphasized that external circumstances necessitate the stability-oriented monetary policy pursued by the Hungarian National Bank (MNB).

In his presentation, Mihály Varga highlighted that Hungary has maintained its financial stability even in the difficult external environment, which is also evidenced by the forint exchange rate that has stabilized in recent months, and the effect of the stable exchange rate is increasingly visible in purchasing prices.

Although inflation is still primarily a problem in Central and Eastern Europe, the current account surplus, the improving budget balance and the resilient labor market provide a secure foundation for the Hungarian economy.

The central bank governor stated that domestic consumption remained strong, but the key to boosting growth is the launch of investments. With this in mind, the central bank launched the Qualified Corporate Loan scheme, through which small and medium-sized enterprises can easily and quickly access favorable loans for their investments, he added.

Mihály Varga emphasized that demand is picking up in retail lending and the housing market, but a further turnaround is needed in corporate lending, in which the new instrument can provide effective assistance.

The central bank governor reminded that although the processes of the past period provide a good basis for looking ahead, we should not lose sight of the fact that the fight against inflation is far from over.

Stabilizing inflation expectations is also essential for sustainably achieving the central bank’s inflation target.

As he said, strengthening confidence, further reducing inflation and preserving financial stability are goals that require consistent central bank policy.