Commenting on the weaker forint, which recently slipped past 330 to the euro, Varga noted that the national currency had since recovered somewhat, but added that it was calibrating to changed conditions on global markets.

“Naturally, one also has to be aware that that calm period during which the forint’s exchange rate [to the euro] was between 305 and 315 has come to an end: the Fed has started a tightening cycle, the ECB is rolling back its quantitative easing -- as far as exchange rates are concerned, this results in a more sensitive period, when the forint also finds a new equilibrium level in response to these conditions,” Varga said.

He said there was no need to modify next year’s budget because of the weaker forint. Higher expenditures will be matched by higher revenue from taxes on consumption because of inflation, he explained. The 2019 budget assumes a HUF/EUR exchange rate of 311.

MTI Photo: Kovács Tamás