After attending the annual conference of the Bank for International Settlements in Basel, calling for closer cooperation among central banks, Mihály Varga said that MNB continues to focus on achieving and maintaining price stability, for which international monetary policy cooperation is key in the current turbulent period.
The conflict in the Middle East, the tariffs introduced by the U.S. administration and the counter-measures applied worldwide are creating significant uncertainty in the macroeconomic outlook. Hungary’s growth prospects also remain uncertain due to trade and geopolitical tensions, which may again cause inflationary pressure, Varga said.
MNB puts Hungary’s GDP growth at 0.8% this year, 2.8% in 2026 and 3.2% in 2027, he added.
On inflationary expectations, he said inflation could sustainably reach the central bank’s 3 percent target in 2027, therefore, a cautious and patient monetary policy was still needed.
Varga also conducted bilateral talks with the governor of Azerbaijan’s central bank, Taleh Kazimov.
After the conference, the MNB governor will travel to Sintra, Portugal, to attend the annual conference of the European Central Bank, the statement said.
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