Márton Nagy also spoke about the extra profit tax and the price cap

The economist-turned-minister of economic development answered all questions, so we covered not only the topic of catching up or competitiveness, but also current affairs such as the prime minister’s annual evaluation, the construction of battery factories or the state’s strategic company purchases.

“If energy prices had not fallen, no matter how high the base interest rate is, the exchange rate will presumably not stabilize. Energy is the key, the root of the problem. The central bank’s interest rate policy is also an important factor, but not decisive in this matter. There are other measures against sanctioned inflation perception and unorthodox means must be fought. The government could do nothing but protect the population through price caps and other interventions. Many overlook the fact that the utility reduction measure, which has been in effect since 2013, is essentially a price cap, which is now in danger, but we managed to protect it up to average consumption. Although the official prices introduced by the government have negative, market-distorting effects, it is undeniable that they provide protection against inflation”

– explained the specialist.