Mihály Varga: the central bank’s primary goal is to maintain price stability

At the meeting, the Finance Minister introduced Benő Péter Banai, State Secretary of the Ministry of Finance, Zoltán Kurali, CEO of the State Debt Management Center, and Levente Sipos-Tompa, CEO of the Hungarian Development Bank, as members of his future central bank team, but did not disclose their expected positions.

The Economic Committee of the Parliament supported the appointment of Mihály Varga as governor of the central bank by a majority vote.

According to the Finance Minister, his commitment to maintaining the 3 percent inflation target is a clear and unambiguous message that helps to set the expectations of consumers, businesses, and financial and capital market participants.

Assessing the state of the economy, Mihály Varga explained, among other things: the Hungarian economy is on stable foundations, inflation is within the central bank’s target range, the current account is expected to show a surplus of 2 percent of GDP this year. The liquidity of the population, companies and the banking system is strong, and the financial system is stable – he indicated.

The basis for growth in 2025 is rising consumption, expanding household lending, growing orders in the construction industry, and new manufacturing capacities. Monetary policy can contribute to growth by maintaining persistently low inflation and financial stability – he said.

The Minister of Finance emphasized: the stability of financial markets and the forint exchange rate is of paramount importance in terms of ensuring price stability. A predictable and stable exchange rate is necessary for sustainable economic growth – he stated.