Mihály Varga: economic stability is the most important thing

By: Trademagazin Date: 2025. 03. 07. 11:50

Mihály Varga, the newly appointed Governor of the Hungarian National Bank (MNB), emphasized in his speech at the 2025 Economic Year Opening Ceremony that a disciplined and patient monetary policy is essential in the current economic situation. At the Economic Policy Forum of the Hungarian Chamber of Commerce and Industry, which was held at the Puskás Arena in Budapest, the MNB Governor pointed out the importance of maintaining macroeconomic stability.

Mihály Varga began his speech with a humorous remark that caused the audience to cheer up. He recalled that he had moved from the Ministry of Finance building, designed by Ignác Alpár, to the MNB headquarters, also designed by Alpár. “I quickly looked at what else he had planned, it also had a bathhouse and a tomb,” he noted ironically.

He then moved on to an analysis of the global economic situation, emphasizing that “every major region is struggling with its own difficulties, except perhaps the United States.” Europe is experiencing its slowest economic growth in six decades, while inflation is also accelerating in the eurozone.

The role of the central bank in the fight against inflation

According to Mihály Varga, the MNB’s most important task at the moment is to achieve and maintain price stability. He stressed that in order to curb inflation, monetary policy must remain disciplined.

“The MNB can contribute most effectively to achieving macroeconomic goals by achieving price stability and maintaining financial market stability,”

he emphasized.

The central bank president highlighted that macroeconomic uncertainties have increased in the recent period, which is why a conscious and patient monetary policy is particularly important.

Global and domestic challenges

According to Mihály Varga, global economic trends are unfavorable, and the increase in raw material prices, especially food prices, is further increasing inflationary pressure. He highlighted that the Hungarian central bank is continuously monitoring domestic and external market developments in order to respond effectively to economic challenges.

“The MNB is closely monitoring external and internal developments and the risks surrounding the outlook,”

– said the central bank’s president.

At the conclusion of the Economic Year-Opening, Mihály Varga confirmed that the central bank’s obligation is to continue the fight against inflation, maintain macroeconomic stability and strengthen the financial system.