Hungarian Central Bank Independence at Risk, Governor Warns
- Government seeks to increase the central bank’s oversight
- Orban, Governor Matolcsy have been at loggerheads over policy
Gyorgy Matolcsy
Photographer: Akos Stiller/BloombergThis article is for subscribers only.
Hungarian Prime Minister Viktor Orban’s government is planning a “significant attack” against central bank independence with a proposed modification of the law regulating the institution, Governor Gyorgy Matolcsy said.
The remarks by the former Orban ally marked the intensification of a years-long public feud between the cabinet and the central bank. It threatens to deal another economic blow to a country that’s been tested by a recession and the highest inflation and borrowing costs in the European Union over the past year.