Hungary's stock market hits record highs as central bank chief eyes stability

Mihaly Varga, governor of the National Bank of Hungary speaks during a press conference in Budapest, Hungary, on Jan. 12, 2026. (Photo by Attila Volgyi/Xinhua)

BUDAPEST, Jan. 12 (Xinhua) -- Hungary's stock market delivered a record-breaking performance in 2025, reflecting strengthening economic stability, Mihaly Varga, governor of the National Bank of Hungary (MNB), said on Monday.

Speaking at a year-opening press conference at the Budapest Stock Exchange (BSE), Varga emphasized that economic success is rooted in the synergy between central banking and capital market activities.

"Economic success requires stability and trust," Varga said, noting that the BSE maintained its position as a regional leader, posting the second-best performance among its peers last year.

The BUX index, which tracks blue-chip shares on the BSE, surged to record levels of approximately 110,000 points in 2025. Varga attributed this milestone to the broader strengthening of the Hungarian economy.

Regarding monetary policy, the governor reaffirmed that curbing inflation remains the MNB's primary objective.

Inflation fell from around 5 percent at the beginning of last year to below 4 percent by the end of 2025, bringing it back within the central bank's tolerance band, Varga said. He added that the central bank is on track to reach its 3 percent inflation target in early 2026.

The governor also highlighted the stabilization of the Hungarian forint as a pillar of the nation's financial health. The currency followed a sustained appreciation trend, moving from around 410 against the euro a year ago to its current level near 385.

According to Varga, Hungary's banking system is well-capitalized, providing ample financing for economic players. He added that foreign currency reserves have reached a historically high level of over 50 billion euros (58.39 billion U.S. dollars), further underpinning sustainable economic development. ■

Mihaly Varga, governor of the National Bank of Hungary speaks during a press conference in Budapest, Hungary, on Jan. 12, 2026. (Photo by Attila Volgyi/Xinhua)