In a speech at the Hungarian Chamber of Commerce and Industry’s year opening event, National Bank of Hungary Governor Mihály Varga said the central bank’s new management had focused on strengthening stability and trust, pointing to lower inflation, a stronger forint and record-high international reserves. International reserves reached a historic high of nearly EUR 60 billion last year, which Varga linked to financial stability and market confidence. He said monetary policy, alongside government measures, had helped bring domestic inflation down from 5.6 percent in February last year to 2.1 percent by the start of this year, and argued that a stable forint supports disinflation and competitiveness by fostering a predictable financial market environment. Varga also described Hungary’s banking system as stable, with a stronger capital position supported by recent high profitability, and said conditions were in place for stronger lending activity, while noting that growth could accelerate if investment picks up alongside higher domestic and external demand.
National Bank of Hungary 2026-03-05
National Bank of Hungary governor cites near EUR 60 billion reserves and inflation down to 2.1 percent as stability gains
National Bank of Hungary Governor Mihály Varga emphasized the central bank's focus on stability and trust, citing reduced inflation, a stronger forint, and record-high international reserves of nearly EUR 60 billion. Varga attributed the decline in domestic inflation from 5.6% to 2.1% to effective monetary policy and government measures. He also noted the banking system's stability and potential for increased lending amid favorable conditions.