Istanbul, 8 October 2026 – “In the uncertain global economic environment, maintaining price stability continues to be the most important task of central banks, while the rise in energy prices and geopolitical tensions pose challenges,” stated MNB Governor Mihály Varga, in attendance at the Istanbul Economic Forum. He underlined that the disciplined, cautious monetary policy pursued by the MNB over the past one and a half years had also contributed to fulfilling the prerequisites for lowering the inflation target, further strengthening the MNB’s commitment to price stability.
Governor Varga pointed out that maintaining price stability was an important prerequisite for economic growth, as high and volatile inflation weakened purchasing power, made long-term planning more difficult and discouraged investments. As he had previously said, the economic environment warranted a prudent monetary policy, along with the continuous monitoring of alternative scenarios. Varga stressed that the disciplined, cautious monetary policy had contributed to the Bank setting the medium-term inflation target at 2.5 percent – which will come into effect on 1 January 2028 – following the review of its inflation targeting framework. He noted that in the long term, the lower inflation target would result in more moderate inflation, a more predictable economic environment and lower financing costs. The MNB Governor also called attention to the fact that in the uncertain economic environment, data-driven monetary policy played an important role. As he had previously noted, the MNB did not react to all incoming data but rather reviewed changes that impacted the medium-term inflation outlook. Varga stressed that the Monetary Council was committed to achieving the inflation target in a sustainable manner and would continue to make cautious and data-driven decisions based on the inflation outlook and global developments, as well as domestic risk premia. With his Greek and Azeri counterparts, the Governor of the Hungarian central bank participated in a panel discussion moderated by the Chief Executive of the Hong Kong Monetary Authority.
Magyar Nemzeti Bank