Changing positions in the MNB and the Monetary Council should not have any impact on monetary policy

HUNGARY - In Brief 21 Nov 2025 by Istvan Racz
Today's news is the sudden resignation of Barnabás Virág, vice governor of the MNB, who is to be replaced by Péter Benő Banai, currently senior advisor to Governor Varga, and formerly the secretary of state responsible for the government budget in Mr. Varga's Finance Ministry, and for a limited period, also in the reformed Economy Ministry, under Minister Nagy. Implicitly, this means that Mr. Virág is also going to leave the Monetary Council, of which he has been the member since June 22, 2020, as a vice governor of the MNB, and that Mr. Banai is going to become a new member of the Council, directly stemming from his new position as a vice governor, pursuant to the Central Bank Act.Should investors be concerned about this change, worried about a potential shift in monetary policy? Not at all, we would say clearly and loudly.First, Mr. Virág, for long the MNB's and the Council's voice on monetary policy has been responsible for a completely new area (analysis, the operation of the payment system, the issue and management of banknotes and coins, and various MNP programs) in the MNB since Mr. Varga's takeover, without bearing responsibility for monetary policy. Mr. Banai will reportedly take over the same area, monetary policy matters being taken care of by Zoltán Kurali as vice governor.Second, Mr. Banai, an excellent professional in the area of government finances, has no roots in central bank policy at all. He is simply Mr. Varga's man, someone who the latter presented to parliament's Economic Committee already in last December, as one of those who he intended to work with in the MNB as well. Mr. Banai stepping in as vice governor only means that Mr. Varga's takeover o...

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2025 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.