Warsaw, 11 April 2025 – As global trade tensions fuelled economic and financial market uncertainty, the Hungarian central bank would continue to pursue a disciplined monetary policy focused on stability, according to MNB Governor Mihály Varga, who was attending the meeting of European Union economic and finance ministers and central bank governors (ECOFIN) in Warsaw. Varga emphasised that, even though lower growth and higher inflation risks might also impact Hungary due to the tariff war, Hungarian economic fundamentals were stable, growth had resumed, and the capital position and liquidity of the banking system was robust.
The new tariff measures and uncertain global economic environment posed downside risks to growth prospects, according to Governor Varga, who added that the fight against inflation was not over yet and that patience was essential on the part of the central bank. Since September last year, inflation had risen in more than two-thirds of the OECD countries and in 22 of the 27 EU Member States. As he noted, although it was still too early to assess the precise inflationary impact of the new tariff measures, achieving price stability and maintaining financial market stability in the current uncertain environment was still possible with a disciplined and strict monetary policy. Varga pointed out that European capital markets were facing a number of challenges that were hampering their development and global competitiveness. Consequently, the MNB believed that regulatory harmonisation, greater transparency and the promotion of financial literacy was essential for strengthening capital markets, he added.