Warsaw, 7 November 2025 – “Countries in the CEE region have had excellent success in lowering inflation in recent years. Nevertheless, reducing inflation expectations, and restoring and maintaining price stability are still important tasks,” according to MNB Governor Mihály Varga, speaking at the 7th Hungarian-Polish Central Bank Conference in Warsaw. Governor Varga emphasised that cooperation and knowledge-sharing between central banks was an important building block of economic stability in the region.
Varga highlighted that low, predictable inflation formed the basis for the healthy operation of the economy, as companies and households were only able to effectively plan ahead when price stability was maintained. By contrast, high inflation eroded trust, lowered real wages and impeded economic growth. He emphasised that a stability-oriented monetary policy was still warranted, in order to sustainably achieve the inflation target. As he had previously stated, the consistent monetary policy pursued in recent months had contributed to reducing inflation and the enhancing financial market stability. The MNB Governor also called attention to the fact that the stability of the forint played an important role in the process of disinflation, noting that a stable exchange rate helped mitigate inflation and anchor inflation expectations. He underlined that, in the current, uncertain economic environment, cooperation between central banks was of great significance, in addition to a prudent, stability-oriented monetary policy. As he had previously said, cooperation between the Hungarian and Polish central banks was based on the historical relationship between the two countries, and the current knowledge-sharing and professional cooperation served to reinforce stability and thus support economic growth in both countries.
Magyar Nemzeti Bank