Orban's Stance on Euro and Economic Strategy

Hungarian Prime Minister Viktor Orban expressed skepticism about adopting the euro, citing the European Union's instability. He criticized the central bank's current interest rate, suggesting it should be lower, but acknowledged that rate cuts are expected to proceed slowly due to the governor's cautious approach.

In a recent interview with EconomX, Hungarian Prime Minister Viktor Orban dismissed the notion of adopting the euro, pointing to what he perceives as the European Union's ongoing disintegration. Orban stated that Hungary should avoid strengthening its ties with the bloc in its current state.

The Prime Minister also took aim at Hungary's central bank's interest rate, currently at 6.5%. According to Orban, this rate is higher than necessary, hampering economic progression. However, he recognized that reductions in the interest rate will move at a slower pace than desired.

Orban attributed the cautious and gradual approach to rate cuts to the central bank's governor, Mihaly Varga, highlighting that Varga is known for his prudent financial strategies.

(With inputs from agencies.)