National Bank of Hungary reports losses but maintains stability amid inflation challenges

In 2022-2023, the central bank’s most important task was to maintain stability. In an unprecedented, extremely turbulent environment, it was necessary to continuously make calm, considered and correct decisions, National Bank of Hungary (NBH) deputy-governor Barnabás Virág said on Wednesday.

Speaking in parliament while presenting the NBH‘s 2022 and 2023 business reports, Virág said that in 2022 inflation was in the double digits in almost 90 countries, including Hungary. The central bank therefore could have no other goal than to stop high inflation and bring it down as quickly as possible.

He noted that after inflation climbed to 24.5pc in 2022 it fell back to 5.5pc by December 2023.

Speaking about the stability of the financial system, Virág said despite challenges the stability of the domestic financial system was never in question for a moment.

In his speech Virág referred to the NBH injecting HUF 11,000bn into the Hungarian economy through various programmes, raising awareness about competitiveness, launching the Green Home Programme and supporting digitalisation efforts in the financial system.

The deputy-governor noted that in 2022 the NBH registered a HUF 402bn annual loss for the year which climbed to HUF 1,700bn last year. He noted that as the central bank is a special institution, its results do not characterise its operation, but rather reflect economic circumstances and that it does not have a profit target.

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