Hungary’s central bank says euro adoption requires careful preparation

Hungary’s central bank governor Mihaly Varga said euro adoption requires careful preparation and that the central bank will only adjust monetary policy after seeing an official government plan. He stressed the importance of central bank independence and noted he has not yet met with Peter Magyar. The comments, against a backdrop of the bank’s recent support for tight policy after elections, signal caution and conditional policy shifts rather than immediate action — an outcome likely to keep near-term FX volatility limited until a formal government timeline appears. Markets may interpret the remarks as neutral-to-cautious for the euro, with policy divergence left dependent on political developments in Budapest.