Hungarian central bank governor: May consider increasing the proportion of gold in foreign exchange reserves

News Brief

PANews reported on January 27 that Hungary's central bank has maintained its benchmark rate at 6.50%, aiming to bolster financial stability while working steadily toward achieving a 3.00% inflation target. Given the persistent uncertainty surrounding inflation trends, the bank intends to adopt a cautious, data-driven approach in upcoming meetings. Governor Varga indicated that Hungary may consider increasing gold's proportion within its reserves, which currently totals 110.00 tons—representing 25.50% of foreign exchange holdings as of November 2025, according to World Gold Council data. Additionally, he emphasized that a more robust forint effectively helps control import prices.

PANews reported on January 27 that the Hungarian central bank announced it would maintain its benchmark interest rate at 6.5%, continuing its tight monetary policy to maintain financial market stability and committing to achieving its 3% CPI target sustainably. Despite continued uncertainty about the inflation outlook, the central bank will assess interest rate decisions cautiously and data-driven at each meeting. Hungarian central bank governor Varga stated that Hungary may consider increasing the proportion of gold in its central bank reserves. (According to the latest data from the World Gold Council in January, as of November 2025, Hungary's gold reserves will be 110 tons, accounting for 25.5% of its foreign exchange reserves.) He pointed out that the appreciation of the forint helps limit the rise in import prices.