Hungarian central bank governor says PM Orbán derailed Hungary’s economy
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Hungarian central bank (MNB) governor György Matolcsy has a personal problem, not a professional one, Balázs Orbán, the prime minister’s political director, told news site Mandiner on Thursday.
Mr Orbán was commenting regarding Mr Matolcsy calling for a complete turnaround in Hungary’s economic policy at the 62nd Itinerant Conference of Economists on Thursday.
Matolcsy said there was no economic policy direction in Hungary between 2021 and 2024, which may jeopardize the achievements of the 2010s and the goals set for 2030. He added that the Orbán cabinet made two big mistakes concerning the economy. First, they failed to keep the budget deficit at bay. Second, they did not join the central bank in their fight against skyrocketing inflation.
As a result, most people are victims of inflationary shock in the Hungarian economy, so they do not want to consume. He said the Orbán cabinet was wrong to believe higher real wages automatically boost consumption. He also highlighted that such a high deficit would be life-threatening for the Hungarian economy.
Central bank governor in unresolvable dispute
Mr Orbán noted that the central bank governor has a long-standing personal dispute with the minister responsible for Hungarian economic management, and according to Mr Orbán, this seems unresolvable.
He said that while the disagreement weighs on the economy, it will ceases at the latest on March 3 next year when the current mandate of Mr Matolcsy expires.
The government is not giving up its goal of making Hungary one of the five most liveable countries in Europe by 2030, he added.