The building of the NBH in Budapest – Photo: wikimedia

Fidesz blasts opposition 'attacks' on government's anti-inflation measures

Matolcsy: Tackling inflation ‘top priority’

Inflation is central banks' greatest foe, and tackling it is a vital step towards creating monetary sustainability, Gyorgy Matolcsy, the governor of Hungary's central bank (NBH) wrote in an article published by on Monday.

Eighty percent of Hungary’s inflation is imported, Matolcsy noted.

The governor also said the NBH’s general quantitative easing programmes would be replaced by targeted credit facilities.

Matolcsy also wrote about the future of central banking in his article, saying that central banks must embrace innovation.

He noted that the NBH had been handed a green, sustainability mandate, which was the first in Europe.

Matolcsy argued that today’s two-tier banking system should become more diverse, thereby forging a stronger financial system.

Fidesz blasts opposition ‘attacks’ on government’s anti-inflation measures

Ruling Fidesz on Monday hit back at what it called “hypocritical attacks” by Hungary’s left-wing opposition on the government’s anti-inflation measures, saying the left had “nearly bankrupted” the country when it was in power.

The government’s scheme of utility bill cuts and decisions to freeze the rates on retail mortgage loans and cap the prices of seven basic food products are all aimed at shielding the Hungarian people from the negative effects of inflation, Istvan Hollik, the party’s communications director, said in a video message.

“But not only has the left refused to support these measures, they’re also attacking them,” he said.

Hollik said the opposition’s call for VAT on basic foods to be cut to 5 percent was “hypocritical”, arguing that it had already been implemented, even though the left had refused to vote for the measure in parliament.

“The left never helped the people when it was in power, and even imposed more burdens on them by failing to protect them from energy price increases, scrapping the 13-month pension, cutting the wages of teachers and health-care workers and cutting family support,” he said.

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