Finance minister, central bank governor discuss economic policy

Talks focused on next year’s budget, which the ministry said would guarantee Hungary’s security, protect families, pensions and jobs, as well as the cap on household utility bills. Varga and Matolcsy were in agreement that disciplined policies and the reduction of the budget deficit and the public debt could put the country’s economic growth back on track next year.

Accordingly, next year’s budget targets a deficit of less than 3 percent of GDP and aims to reduce the public debt-to-GDP ratio below 67 percent. It assumes a GDP growth rate of “around 4 percent”, the statement said.

The government and the central bank aim to push inflation into the single digits by the end of the year, reduce interest rates and protect the economy from recession, the ministry said.

Varga and Matolcsy last met in April, when they agreed to hold consultations on strategic matters on a regular basis.