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Crisis taxes to add 0.3 percentage point to inflation, Simor says

Recently introduced “crisis taxes” will add three-tenths of a percentage point to inflation, National Bank of Hungary (MNB) governor András Simor said in an interview broadcast on Klub Rádió.

Businesses will not be able to pass the entire cost of the taxes on to consumers, Simor said. If they did, CPI could rise by a full percentage point, he added.

Simor reiterated his stand on the government's failure to more closely involve the central bank in decisions that affect it.

Simor complained two weeks earlier in a letter to National Economy Minister Gyorgy Matolcsy that the government had not, as required by law, informed the central bank in due time about decisions under preparation or legal processes affecting its tasks or the operation of the financial system.

Cooperation between the government and the central bank could bring a better economy, a better investor climate and a lower risk premium, Simor told Klub Rádió.

Simor said he would stay in his post until his mandate expired, answering a question.

“I believe this country needs an independent central bank. I believe in the central bank's mission: price stability. I must see this through to completion,” he said. (MTI – Econews)