MNB president sees price stability by 2008
Hungary's central bank MNB will carry on decreasing the base rate if inflation continues to lower as it is expected by the bank's experts, MNB president András Simor said.
Decrease of the base rate will remain “conservative and moderate” he added. MNB projects price stability at the end of 2008 or the beginning of 2009. Price stability would mean a 3% inflation throughout a period of 12 months. But even a lower than 3% inflation would not bridle the economy, he added. The central bank and the government do not agree on the issue of the +/-15% trading band of the Hungarian currency, the bank would support scrapping the band because it might become an obstacle to pursuing the inflation target, but the issue is not on the agenda as yet. The issue is not about to turn into a conflict within the next two-years or more, Simor told press agency Reuters. (Gazdasági Rádió, Napi Gazdaság)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.