Economic policy turnaround needed to cut interest expenditure

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Hungary needs an economic policy turnaround for the country risk premium to fall, which would in turn reduce the interest expenditures of the central budget; such a policy turnaround could be sealed by Hungary's agreement with the IMF/EU, vice president of the National Bank of Hungary Julia Király said at an event organized by the Joint Venture Association on Monday.

She added that a high primary balance in the budget is required for reducing the government debt.

Király said inflation will be well above 5% this year. The central bank's experts are still calculating their forecast for 2013, but inflation will still remain above the 3% inflation target next year, she said.

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