Basel, 8 September 2025 – “In the current uncertain global economic environment that is burdened by trade and geopolitical tensions, a stability-oriented monetary policy remains essential,” said MNB Governor Mihály Varga, who participated in the two-day meeting of the Bank for International Settlements (BIS) in Basel. Varga emphasised that cooperation between central banks was crucial for ensuring international financial stability.
Governor Varga recalled that Hungary’s economic situation remained stable even in the uncertain environment. According to the MNB’s projections, the volume of Hungary’s GDP could increase by 0.8 percent this year. As he had previously stated, strengthening trust and recovery in the European economy were crucial to accelerate growth. The Governor highlighted that while household consumption continued to grow steadily, investment activity showed a protracted decline. In response, the Magyar Nemzeti Bank had launched the Certified Corporate Loan (CLL) programme, which allowed small and medium-sized enterprises to obtain favourable loans for their investments quickly and easily. Governor Varga stressed that even though inflation was expected to remain above the central bank’s tolerance band for the rest of the year, a tight monetary policy contributed to slowing down price increases and maintaining stability. As he had previously noted, Hungary’s financial stability was also reflected in the performance of the forint exchange rate in recent months, and the effects of the stable exchange rate were also evidenced in purchasing prices.
Governor Varga also held talks with his Chinese counterpart, Governor Pan Gongsheng. The two central bank governors signed a document in Basel extending the currency swap agreement.
Magyar Nemzeti Bank