MNB remains an anchor of stability in an uncertain global economic environment

Veszprém, 4 September 2025 - “Uncertainties have increased in the global economy over the past year, and at the same time the engines of growth are slowing down,” said MNB Governor Mihály Varga, speaking at the 63rd Itinerant Conference of Economists in Veszprém. Varga stressed that external circumstances had made it necessary for the Magyar Nemzeti Bank to pursue a monetary policy oriented towards stability.

In his presentation, Governor Varga emphasised that Hungary had remained financially stable even in the difficult external environment, as evidenced by the forint exchange rate stabilising in the past months, and noted that the effects of the stable exchange rate were increasingly reflected in purchase prices. While inflation continued to mainly be a Central-Eastern European issue, the current account surplus, the improving budget balance and the resilient labour market provided solid foundations for the Hungarian economy. As the Governor explained, domestic consumption remained strong, but revitalising investments was crucial in order to accelerate growth. With this in mind, the Magyar Nemzeti Bank had launched the Certified Corporate Loan (CLL) programme, which allows small and medium-sized enterprises to obtain favourable loans for their investments quickly and easily.

Governor Varga stressed that while a pick-up in demand could be observed in retail lending and the housing market, a turnaround was also needed in corporate lending. The MNB’s new tool could provide effective assistance in this regard.

Varga also recalled that although recent developments provided a good basis for the future, it was important that we did not lose sight of the fact that the fight against inflation was far from over. Stabilising inflation expectations was essential to achieving the central bank’s inflation target in a sustainable manner.

As he had previously stated, strengthening trust, further reducing inflation and maintaining financial stability were goals that necessitated a consistent central bank policy.

Varga added that in the spirit of building predictability and trust, which were of key importance when it came to the economy, the Magyar Nemzeti Bank was also playing an active role in combating financial fraud, by way of the “five strikes” measures which were announced in the early summer.