Matolcsy cites success of gov’t economic policies

The economic success of the last 33 months will basically decide the operation of the National Bank of Hungary over the next six years, National Economy Minister György Matolcsy said at a parliamentary hearing on Friday, hours after his nomination to become the next central bank governor was announced.
    Matolcsy noted that Hungary's general government deficit had been brought, “in a sustained and sustainable” manner, under the 3% of GDP threshold, the level of state debt had been reduced and employment had grown. This helps the central bank achieve the goals outlined for it in the Central Bank Act: first price stability, then maintaining financial stability, and afterward supporting economic growth, he added. TheMNB's new management will always and in all respects abide by the Central Bank Act, Matolcsy said.
    Matolcsy is set to replace András Simor, whose mandate expired on March 2. Simor's term has been marked by tensions between the government and the management of the central bank.  Speaking about his own principles for monetary policy, he mentioned keeping down the stock of foreign currency-denominated loans and changing the central bank's political perception.