Mihály Varga appointed NBH governor — UPDATED

Hungarian President Tamás Sulyok has appointed Mihály Varga to a six-year term as governor of the National Bank of Hungary (NBH) at the Sándor Palace on Monday.

The NBH governor is appointed by the president of Hungary based on the proposal of the prime minister, after a hearing before a parliamentary committee.

Before receiving his letter of appointment, the former Finance Minister swore an oath on the Fundamental Law and to exercise his office for the benefit of the Hungarian nation.

The event was attended by Prime Minister Viktor Orbán, House Speaker László Kövér, Gergely Gulyás, the head of the Prime Minister’s Office and Máté Kocsis, who heads the parliamentary group of Fidesz.

New NBH governor flags ‘consistent’, ‘disciplined’ monetary policy

Mihály Varga, the new governor of the National Bank of Hungary (NBH), said the central bank would continue a “consistent” and “disciplined” monetary policy that “strengthens credibility and trust” in a statement issued on Tuesday.

Varga, who was sworn in on Monday, said that “stability, independence and transparency” would be the basic principles for the central bank’s operation under his watch.

Varga signalled “firm” responses to any risk to the inflation target, financial stability or the sustainable development of the economy, in line with the NBH’s main goals.

He stressed that his work would pair “clear communication and consistent action”, increasing confidence in the local financial system and ensuring security for economic players.

The NBH will operate according to the principles of transparency, professionalism and responsible management, while reducing activities that fall outside of the scope of “classical central bank tasks”, he said.

Varga said the Hungarian economy rested on stable foundations and pointed to a favourable growth outlook along with strong liquidity of households, businesses and the banking system.

“By keeping inflation persistently low and preserving financial stability, the central bank can support sustainable economic growth,” he added.

He noted that the law ensured the central bank’s independence and said the NBH would cooperate with the government as well as local and international organisations in line with best practices and mutual respect for respective responsibilities.

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