The National Bank of Hungary reported on Governor Mihály Varga’s participation in the Bank for International Settlements meeting in Basel, where he argued that a stability-oriented monetary policy remains essential amid global uncertainty and stressed that central bank cooperation is crucial for international financial stability. During the visit, Varga and People’s Bank of China Governor Pan Gongsheng signed a document extending the bilateral currency swap agreement. Varga said Hungary’s economy remained stable and cited the MNB’s projection that GDP could grow by 0.8% this year, with household consumption continuing to expand while investment activity showed a protracted decline. He pointed to the Certified Corporate Loan (CLL) programme as a response to support small and medium-sized enterprises in accessing favourable investment loans, and noted that inflation was expected to remain above the central bank’s tolerance band for the rest of the year, with tight monetary policy contributing to slower price increases; he also linked financial stability to the forint’s recent exchange rate performance and its effect on purchasing prices.
National Bank of Hungary 2025-09-08
National Bank of Hungary reiterates stability-oriented monetary policy at BIS meeting and extends currency swap agreement with China
The National Bank of Hungary reported Governor Mihály Varga's participation in a Bank for International Settlements meeting, emphasizing stability-oriented monetary policy and central bank cooperation for global financial stability. Varga and the People’s Bank of China Governor extended the bilateral currency swap agreement. Varga noted Hungary's stable economy, projecting 0.8% GDP growth, with inflation expected to remain above the central bank's tolerance band despite tight monetary policy.