An easing of monetary policy would be very risky in the present situation, as it could further deepen the recession: the room for monetary policy maneuver is limited, National Bank of Hungary governor András Simor told Parliament's budget and financial committee.
Rates can be cut when the country's risk assessment stabilizes, Simor said.
The Hungarian economy is still very vulnerable, and this is difficult to fix in the short term, he said. Hungary's level of state debt set to remain high for the long term and the government securities market is still not operating satisfactorily - Hungary's risk premium is still the highest in the region, he added. (MTI – Econews)