European Central Bank President Mario Draghi said Hungary’s central bank must stay independent in order to maintain its credibility. “A key prerequisite for a credible monetary policy is the independence of the central bank, the ultimate success of a central bank in maintaining price stability depends on its credibility,” Draghi said.
Hungary’s central bank needs to make sure it is not influenced by other sources, Draghi added. Current governor András Simor’s term will expire in March. Many expect that Prime Minister Viktor Orbán will replace Simor with one of his loyalists.
