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Central bank to use new model in next inflation report

The National Bank of Hungary's (MNB) next Quarterly Inflation Report will place the interest rate path necessary for achieving the inflation target in the focus, Ágnes Csermely, a director at the central bank, said at a press conference on Tuesday.

Earlier inflation reports by the MNB showed what would happen in the economy if monetary conditions, such as exchange rates, remained unchanged, Csermely said. The new model in the fresh inflation report will help monetary policy react more quickly to economic trends, she added.

From the point of view of making monetary policy decisions, the inflation projection will not be the most important part of the fresh report, but the interest path necessary to reach the target, she said.

The MNB will publish its next Quarterly Inflation Report on March 30.