National Bank of Hungary (MNB) supervisory board chairman Zsigmond Járai called for a looser monetary policy at an insurance conference organized by business news portal portfolio.hu on Tuesday.
The monetary policy of the central bank must change, because the tight policy that followed to date contributed to the deepening of the crisis, Járai said. Recently appointed rate-setters are expected to follow this changed policy, he added.
Hungary’s Parliament on Monday approved the last two of four new appointments to the MNB’s rate-setting Monetary Council. The four economists replace outgoing members whose mandates ended on March 1.
According to Járai, Hungary’s economy is on a 2-3% annual GDP growth path. From this, it could – in principle – achieve 4-5% growth, but this will require restoring investor confidence, because interest rates much depend on that, he said.
Restoring investors’ confidence will be the government’s next task after the new constitution is approved, he said.
National Economy Ministry state secretary Kristóf Szatmáry on Friday said that structural reforms started by the government will only bring results in the long run, if annual economic growth on the scale of 4-6% is reached by 2013 or 2014.
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