Addressing economic challenges requires a stability-oriented monetary policy

Székelyudvarhely, 10 October 2025. – “Addressing the current economic challenges requires rapid adjustment to technological changes, in addition to maintaining a stability-oriented monetary policy and balance,” according to MNB Governor Mihály Varga, who was speaking at the 34^th Itinerant Meeting of the Hungarian Economists’ Society of Romania, held in Székelyudvarhely (Odorheiu Secuiesc). He highlighted that consistent monetary policy could ensure price stability and mitigate inflation expectations, thereby creating a predictable environment for households and corporations throughout region.

MNB Governor Mihály Varga said that, according to Hungarian experience, tackling high inflation was crucial from a national economic perspective as well, as inflation caused lower economic growth and slower convergence, which was a problem affecting the entire CCE region. He explained that compared to last year the disinflation process had stalled in many countries around the world, and economic growth was also slowing down or stagnating in several countries. He added that the uncertainties included political turbulence, which prevented countries from implementing important and necessary programmes rapidly and efficiently. Varga underlined that the Magyar Nemzeti Bank was focusing on achieving and maintaining price stability. As he had previously indicated, the sustainable achievement of inflation goals was one of the key elements in anchoring inflation expectations. In the current economic situation, maintaining the stability of the foreign exchange market was also crucial to mitigating inflation expectations. The MNB Governor pointed out that by pursuing consistent monetary policy central banks were able to anchor inflation expectations, and thereby inflation itself. By doing so, central banks helped unwind the precautionary motives of households and corporations, while strengthening the predictability of the economic environment, and the plannability of consumption and investment decisions. In his presentation, Governor Varga also discussed the use of artificial intelligence, which could increase efficiency when used by central banks. As he had previously noted, this new wave of digitalisation would be the engine of productivity growth in the future, and thus it was crucially important to adapt to it at the right pace.

Magyar Nemzeti Bank

Vissza a tetejére

The primary objective of the MNB shall be to achieve and maintain price stability. (...) Without prejudice to its primary objective, the MNB shall support the maintenance of the stability of the system of financial intermediation, the enhancement of its resilience, its sustainable contribution to economic growth; furthermore, the MNB shall support the government’s economic policy and its policy related to environmental sustainability, using instruments at its disposal.