National Bank of Hungary Governor Mihály Varga reiterated that preserving price stability and anchoring inflation expectations remain the primary tasks of the region’s central banks, speaking at the Visegrád Group central bank governors’ conference organised by the National Bank of Slovakia. He recalled the bank’s decision earlier in 2026 to lower its medium-term inflation target from 3% to 2.5%, effective from 2028. The change is intended to preserve purchasing power and align Hungary’s monetary policy framework with euro area standards. Varga linked price stability to the predictable economic environment needed for investment in knowledge and workforce training. The Visegrád Group governors agreed that high inflation and economic uncertainty could undermine that environment. He reiterated that investment in skills and innovation supports growth over the long term by raising productivity and competitiveness, while predictability encourages investment and the creation of jobs with high added value.
National Bank of Hungary Governor Mihály Varga reiterates price stability priority and recalls 2.5% inflation target from 2028
At the Visegrád Group central bank governors’ conference, National Bank of Hungary Governor Mihály Varga reaffirmed price stability and anchored inflation expectations as the region’s central banking priorities. He recalled the previously decided reduction in Hungary’s medium-term inflation target from 3% to 2.5%, effective from 2028. Varga linked economic predictability to investment in knowledge, skills and innovation that supports productivity and growth.