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Central Bank’s governor recommends 7.7% private pay raise

Hungary’s central bank (MNB) finds that a 7.7% wage raise in the private sphere in 2008 would harmonize with the inflation target of 5% on average and a 2.7% growth in productivity, announced MNB governor András Simor.

Since the past few years have shown that reality always produces a wage rise 1.5% – 2% higher than the raise agreed on in the National Council of Interest Reconciliation (OÉT), the 7.7% can be achieved only if OÉT agrees on a raise of about 6%. As for the Euro adoption, Simor said that it is worth pondering the target date when we know how the 2008 budget law was executed, what the content of the accepted 2009 budget law is and whether the 3% inflation target set for 2009 seems achievable – i.e. at the end of 2008 or at the beginning of 2009. (Gazdasági Rádió)