Matolcsy warns 2022 overspending could fuel inflation

National Bank of Hungary (NBH) governor Gyorgy Matolcsy said he believes the 5.9-percent-of-GDP deficit target in the 2022 budget is "a mistake" and could set the country up for "persistently high inflation" in a column published on the website of daily Magyar Nemzet on Monday. "Parliament has approved the 2022 budget and its target for a 5.9-percent-of-GDP deficit. I believe the decision is a mistake, as it unnecessarily builds significant risk into the operation of the Hungarian economy," he said.