Budapest, 5 May 2026 – “In these turbulent, unpredictable times, stability is not a given: it is a result we can achieve through dedicated work,” according to MNB Governor Mihály Varga, speaking at the Portfolio Lending 2026 conference. Varga emphasised that, in light of the unfavourable and challenging global economic circumstances, preserving and strengthening Hungary’s stability represented a significant achievement.
The MNB Governor pointed out that the current decade was fraught with conflicts and uncertainty: the Russo-Ukrainian war was still ongoing, US customs policy was hampering commerce, and global energy prices had surged due to the Iranian conflict. He added that it was also clear that Europe’s economic performance – in line with the trends from recent years – would be more moderate than growth in either the United States or China. Governor Varga underlined that in the current environment it was vitally important that Hungarian economic fundamentals were stronger than at the beginning of 2022, as the balance of payments showed a surplus, the forint exchange rate was continuously strengthening, and reserves had reached historically high levels, amounting to nearly EUR 60 billion. He recalled that inflation in Hungary had fallen significantly in the past year, affecting a wide range of products. As he had previously noted, although the impact of the Iranian conflict on domestic prices did raise inflation, the stronger forint and price restriction measures were slowing down the rate of price increases. Varga also discussed how the Iranian conflict and the new government’s economic policy measures were crucial in terms of the development of inflation going forward. He stated that Hungary’s banking system – similarly to the euro area banking system – was stable, with adequate liquidity surplus and free capital reserves. The Governor explained that the high profitability seen in recent years, which was outstanding even at an international level, had contributed greatly to stability, and thanks to this the banking sector was able to satisfy dynamic growth in credit demand.
Magyar Nemzeti Bank