Hungary central bank likely cut growth forecast, governor tells wire

Analysis

The national bank of Hungary MNB will most probably reduce its GDP growth forecast in its fresh Inflation Report, MNB governor András Simor said on Thursday.

"The next forecast, which will come out in September, will probably show poorer results for 2011, and probably also for 2012, as a direct consequence, among other things, of what is happening in Europe and particularly in the euro zone," Simor said in an interview with financial news service Bloomberg in Alpach.

Western Europe's slowing economy will hurt Hungary’s growth prospects for "the next couple of years,", he said.

The central bank governor noted that the Hungarian government now expects growth at around 2% this year, compared with a previous estimate of 3.1%.

The central bank, which in June forecast growth 2.6%c growth for this year and 2.7% for 2012, will also have to adjust its estimates, Simor said.

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