The National Bank of Hungary reported that Governor Mihály Varga, speaking at a Bank for International Settlements meeting in Basel, reiterated that central banks’ key task is to achieve price stability while maintaining financial stability and highlighted the role of international cooperation in managing current challenges. During the trip, he signed a partnership agreement with the Bank of Korea that enables knowledge-sharing and joint research, primarily in digital financial innovation. Varga argued that inflation has become the main obstacle to sustainable growth and that anchoring inflation expectations is indispensable. He noted that a modest easing of trade tensions has slightly improved the global outlook, but Germany’s growth prospects remain subdued, and financial markets remain sensitive to trade and geopolitical developments; he also cited supply-chain fragmentation, higher global food prices and strong price dynamics in market services as upside risks to global inflation, supporting stability-oriented monetary policy. The agreement is positioned as a foundation for a long-term professional partnership and deeper central bank cooperation on shared challenges.
National Bank of Hungary 2025-11-10
National Bank of Hungary signs partnership agreement with the Bank of Korea focused on digital financial innovation
Governor Mihály Varga of the National Bank of Hungary stressed price and financial stability's importance at a Bank for International Settlements meeting, highlighting international cooperation's role in addressing challenges. He signed a partnership with the Bank of Korea for knowledge-sharing and joint research in digital financial innovation. Varga identified inflation as a key obstacle to sustainable growth, noting trade tensions and geopolitical developments as factors influencing the global economic outlook.