MNB: Next quarterly report will be a 'milestone'
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The next quarterly Inflation Report of the National Bank of Hungary (MNB), due out late in September, will be a "milestone" in the tightening cycle the central bank started in June, deputy governor Barnabás Virág said in an interview published in business daily Világgazdaság.
"We promised proactive, resolute steps. So far, the base rate has risen by 90 basis points, and we have started the gradual withdrawal of our crisis management tools. Our September Inflation Report will be a milestone in that process. The new forecast will provide an opportunity to assess the incoming data and the impact of our steps so far, and to identify which further steps are necessary and with which tools," Virág told the newspaper.
He said there are two types of central banks at present.
"The one just talks about inflation risks, while the other has already put on the gloves and is doing something about it. We belong to the latter. We can't sit back. Our goal is unchanged: we want to be among the first to restore price stability," he added.
Virág warned that every period of inflation in history had started with decision-makers judging the first price spikes "as temporary."
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