The National Bank of Hungary published remarks by Governor Mihály Varga at the 7th Hungarian-Polish Central Bank Conference in Warsaw, arguing that while Central and Eastern European countries have been successful in lowering inflation, reducing inflation expectations and restoring and maintaining price stability remain key tasks. He stated that a stability-oriented monetary policy is still warranted to sustainably achieve the inflation target, alongside continued cooperation and knowledge-sharing between central banks. Varga linked low, predictable inflation to effective household and corporate planning, while warning that high inflation erodes trust, lowers real wages and impedes economic growth. He said the consistent monetary policy pursued in recent months has contributed to lower inflation and improved financial market stability, and highlighted the role of forint stability in disinflation by helping mitigate inflation and anchor expectations. He also described Hungarian-Polish central bank cooperation as rooted in historical ties and framed ongoing professional collaboration as reinforcing stability and supporting growth in both countries.
National Bank of Hungary 2025-11-07
National Bank of Hungary Governor Varga urges stability-oriented policy and central bank cooperation to anchor inflation expectations
Governor Mihály Varga of the National Bank of Hungary stressed at the Hungarian-Polish Central Bank Conference that reducing inflation expectations and maintaining price stability are crucial for Central and Eastern European countries. He advocated for a stability-oriented monetary policy to achieve sustainable inflation targets and highlighted the role of forint stability in disinflation. Varga also emphasized cooperation and knowledge-sharing between Hungarian and Polish central banks to reinforce stability and support growth.