Why Hungary Adopting Euro Would Benefit Whole Economy - National Bank
- 10 Aug 2026 12:43 PM
Meeting the Maastricht criteria for adopting the euro would benefit the whole Hungarian economy, Peter Beno Banai, a deputy governor at the National Bank of Hungary (NBH), said in the central bank's latest podcast.
Banai noted that the criteria included achieving a stable fiscal position, declining state debt levels, low inflation, low yields on long-term government securities and exchange rate stability.
He added that revisiting the NBH's 3.0pc mid-term inflation target might be useful in light of the 2.7pc reference value for the criterion on price stability.
The Maastricht criterion for inflation is set at 1.5pp over the average harmonised CPI in the three European Union member states with the lowest inflation.
Banai said a forecast for average annual inflation of under 2pc in 2026 issued by the NBH in June remained "realistic" in light of developments in the global economy.
The forecast in the central bank's Inflation Forecast put average annual CPI at 1.8pc for 2026.
Banai acknowledged the possible disadvantages of joining the eurozone, too, and said adopting the common currency would not, in itself, accelerate the pace of economic convergence.
That, he added, would depend on the quality of economic policy.
Photo: Pixabay.com
Source: MTI – Hungary’s national news agency since 1881.
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