Hungarian central bank Governor Gyorgy Matolcsy and Finance Minister Mihaly Varga held talks on Thursday about ways to wrestle down inflation and reduce borrowing costs, the ministry said in a statement.

It said the continued close co-operation of fiscal and monetary policy was critically important to tackle the economic fallout from the war in Ukraine.

"The joint effort will contribute to breaking down inflation, lowering interest rates, further reducing the deficit and debt and return to a path of balanced growth." (Reporting by Gergely Szakacs and Krisztina Than)