Central bank crisis management successful, says Governor

The National Bank of Hungary (NBH) handled the 2020 crisis successfully, and kept inflation at 3.3 percent, close to target, NBH Governor György Matolcsy told parliament’s economic committee, where he presented the NBH’s annual report.

To eliminate the “last vestiges of the crisis”, Hungary will have to focus on competitiveness, he said. The NBH has already listed the steps to improve competitiveness, to exploit the country’s potential, he said.

The report was approved by the committe with 9 votes in favour and 4 against.

During the economic crisis in the wake of the coronavirus pandemic last year, the NBH focused on preserving the stability of Hungarian economy and jobs, as well as on laying the foundations for a rebound once the crisis has passed, Matolcsy said. One of the most effective instruments in Europe and Hungary was the loan moratorium, which Hungary has been maintaining the longest, he said.