The Magyar Nemzeti Bank is preparing to lower its inflation target and will maintain cautious monetary policy ahead of managing the Hungarian forint exchange rate within the ERM II mechanism, Governor Mihaly Varga said on 10 September 2026. Speaking at the 64th edition of the Itinerant Congress of Economists, Varga addressed the framework and prerequisites required for Hungary to eventually enter the euro area.
Conditions for accession
“What is needed is not a fast, but a successful introduction of the euro,” Varga said during his address to the conference. The governor noted that monetary policy will stay prudent as the central bank lays the groundwork for pegging the national currency within ERM II.
Fiscal consolidation remains part of the macroeconomic backdrop. The previous government missed fiscal deficit targets over the past 5 years.
Broader state decisions
Public administration also saw procedural changes alongside the monetary policy discussions. The government declassified and published 13 previously secret decrees concerning research and study contracts totaling 65,000,000,000 forints.
Two leadership positions are open for public tender at the National Research, Development and Innovation Office. Separately, a final decision on internal affairs wage increases may be reached during the 2027 budget year.
Related: Hungary central bank considers lowering inflation target · ECB economists: energy shocks drove euro-area inflation surge
Source: Hungarian National Bank
