The Governor of the Central Bank of Hungary calls for caution regarding Peter Magyar's plan to switch to the euro.

The Governor of the National Bank of Hungary, Mihaly Varga, warned the new Prime Minister Peter Magyar not to rush into adopting the euro, emphasizing that a hasty process could negatively affect the economy.

Magyar, who won the parliamentary elections, aims to put Hungary back on a European trajectory, including through the adoption of the euro. Varga explained that a premature decision could influence the central bank's inflation target, set at 3%, which exceeds the European Central Bank's target of 2%. He mentioned that there are unjustified expectations from the population regarding the introduction of the euro, without adequate preparation.

The Central Bank has decided to maintain the reference interest rate at 6.25%, awaiting the new Government to present its economic plans. Mihaly Varga has already discussed with the new Minister of Finance the necessary conditions to enter ERM II, the preliminary stage for adopting the euro, which requires exchange rate stability for at least two years.