CEE central banks’ challenges discussed at the joint conference of Magyar Nemzeti Bank and Narodowy Bank Polski

The 6th high-level conference organized by Magyar Nemzeti Bank, the central bank of Hungary and Narodowy Bank Polski (NBP), the central bank of Poland took place on 10 June 2024. Hungarian and Polish high-level central bank officials and leading economic and financial experts of the region participated at the event. The conference was held under the title "Central bank policies amid structural shifts in the global economy" and addressed issues such as the transition of the global and local economies and the evolving role of central banks. The conference was opened by MNB's Deputy Governor Barnabás Virág and NBP's first Deputy Governor Marta Kightley, where both speakers celebrated the 100^th anniversary of the foundation of the two central banks. A keynote speech was delivered by Álvaro Santos Pereira, Chief Economist of the Organization for Economic Development and Cooperation (OECD).

The recurring conference is the result of the fruitful cooperation of the Polish and Hungarian central banks. The joint conference of MNB and NBP was titled " Central bank policies amid structural shifts in the global economy"and aimed to address some of the most intriguing economic questions of our times. The recent restructuring of the global economy poses significant challenges to the global financial system as well as the respective central banks.

The event was opened by Barnabás Virág, Deputy Governor of Magyar Nemzeti Bank who started his speech commemorating the 100th anniversary of the foundation of MNB and NBP's predecessor, Bank Polski SA. Reflecting on the title of the conference, Barnabás Virág also emphasised that economic policymakers must remain disciplined and open to innovation at the same time in order for the CEE region to win the decade of the 2020s which is filled with challenges.

After Mr Virág's introduction, the speech of Marta Kightley, First Deputy Governor of NBP followed. Marta Kightley highlighted some of the greatest contemporary challenges economic policymakers face. These included the effect of generative artificial intelligence on growth and some demographic megatrends affecting the CEE region.

Álvaro Santos Pereira, Chief Economist at the Organization for Economic Development and Cooperation (OECD), stated in his keynote speech that while two severe shocks reached the global economy in recent years (i.e., the Covid-19 pandemic and the war in Ukraine, the global community managed to avoid an economic collapse.

Following the opening speeches, three panel discussions were held. The first panel aimed to discuss challenges related to integration and convergence. Participants agreed that the CEE region's convergence is a success story of the past decades which occurred largely due to European economic integration. The second panel discussion tackled the evolving role of central banks shaped by the decade of challenges. Participants stated that inflationary trends of the 2020s can be derived from recent economic shocks, and, that central banks need to address both monetary policy and financial stability in order to mitigate such shocks. Finally, an investors' panel was held where participants discussed the financial and economic outlook of the CEE region.

The event was closed by Barnabás Virág, Deputy Governor of Magyar Nemzeti Bank, appreciating the fruitful thoughts of the speakers and their lively discourse.