Budapest, 5 March 2026 – “The conflicts and uncertainties in the global economy, and the unpredictability of the external environment highlight the importance of stability,” according to MNB Governor Mihály Varga, speaking at the Hungarian Chamber of Commerce and Industry’s Year Opening Event. Governor Varga emphasised that, in line with this, the MNB’s new management had focused on strengthening stability and trust during its first year. As a result, inflation was now lower, the forint was stronger, and the country’s reserves had reached record-setting levels.
Varga highlighted that one decisive factor in terms of stability was that the MNB’s international reserves had reached a historic high of nearly EUR 60 billion last year, noting that the high international reserves contributed to financial stability and bolstered market participants’ confidence in the Hungarian economy. He explained that during the past year, in conjunction with government measures, the MNB’s monetary policy, with its focus on stability and trust, had successfully reduced domestic inflation, which had fallen from 5.6 percent in February last year to 2.1 percent by the start of this year, dropping by more than half. Turning to exchange rate stability, the MNB Governor noted that a stable forint exchange rate not only helped lower inflation, but also reinforced economic activity and improved competitiveness, thanks to fostering a predictable financial market environment. As he had previously stated, in Hungary, as an open economy, it was necessary to pay special attention to monitoring developments in the financial market, and within it, the foreign exchange market. At the same time, from the MNB’s perspective, a credible, predictable monetary policy was the best way to contribute to the stability of Hungary’s financial markets. Governor Varga pointed out that economic growth may accelerate if, in addition to maintaining balance indicators, investments were once again successfully put on an upward trajectory, which required an increase in both internal and external demand. He highlighted that Hungary’s banking system was stable and that its capital position had further strengthened, thanks to the outstanding level of banking profitability of recent years. Accordingly, the conditions for stronger lending activity and thus economic development were fulfilled.
Magyar Nemzeti Bank