Hungarian National Bank Manages Losses and Stability Amid Inflation Challenges
In the fiscal years of 2022-2023, the National Bank of Hungary (NBH) faced the important task of maintaining stability in a volatile and unprecedented global economic environment. Deputy-governor Barnabás Virág emphasized the necessity of making calm, informed, and accurate decisions to address the challenges at hand.
Addressing the Hungarian parliament during the presentation of the NBH’s business reports for the said years, Virág highlighted that inflation had reached double digits in nearly 90 countries, including Hungary, in 2022. As a result, the central bank’s primary objective was to combat high inflation and swiftly lower it.
Despite these challenges, Virág reassured that the stability of the domestic financial system remained intact throughout the turmoil. He attributed this stability to the NBH’s injection of HUF 11,000bn into the Hungarian economy through various initiatives, as well as efforts to promote competitiveness, launch the Green Home Programme, and support the digital transformation of the financial sector.
Virág also mentioned the NBH’s reported annual loss of HUF 402bn in 2022, which escalated to HUF 1,700bn in the following year. However, he clarified that the central bank’s financial results were not reflective of its operational efficiency but rather influenced by economic circumstances, emphasizing that the institution did not have a profit target.
Overall, the NBH’s focus on stability and proactive measures to address economic challenges underscored its commitment to safeguarding the financial well-being of Hungary amidst global economic uncertainties.
