The economy minister in Hungary has once again urged the central bank to provide stimulus and criticised what he defined as a narrow focus on inflation.

The latest exchange in the ongoing dispute between economy minister Marton Nagy and central bank governor Gyorgy Matolcsy comes as the government grapples with reviving growth following a recession. 

This prolonged conflict has periodically impacted the Hungarian Forint, with policymakers facing pressure to lower interest rates.

Nagy described central bankers as acting like “cyclops,” focusing solely on inflation, in remarks made to the Index news website and confirmed by his team.

“Inflation is around 4% now. In such an environment, reinvigorating growth can be started,” he stated.

The country’s central bank has consistently stated that its legal mandate is to focus on price stability. With Governor Matolcsy's term ending next year, Prime Minister Viktor Orban will have the chance to appoint a successor who may be more aligned with his views, Bloomberg reports.

Furthermore, Nagy suggested that with economic growth projected to be around 2% this year, the central bank should revive previous initiatives like the Funding for Growth program to support lending.

He also added that the Hungarian government plans to implement its own fiscal measures to assist families and smaller businesses.

Moreover, the central bank has indicated that one or two additional rate cuts in 2024 are plausible after over a year of easing, though it has consistently advised that caution is necessary.