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Simor: MNB could lower CPI projection on falling crude prices

Hungary is on the appropriate, downward inflationary path, and quickly falling oil prices will obviously have an effect on the next inflation forecast, National Bank of Hungary (MNB) governor András Simor told investors and analysts in London on Wednesday.

Simor noted that the MNB had calculated with a $137-per-barrel crude price in its last Inflation Report in August, but the price has since slipped to around $90 per barrel. This -- if all other factors remain unchanged -- will have a positive effect on inflation, he said.

Speaking about Hungary’s outlook for adopting the euro, Simor said it is not enough to meet the Maastricht requirements, it must achieve these in a sustainable way.

Asked by MTI how severely the political uncertainty in Hungary is affecting the assessment of investment constructions, Simor said if there is risk, it will come with a higher risk premium. He added that global tendencies currently had the biggest effect on the market. (MTI-Econews)