The government and the National Bank of Hungary (MNB) are not expected to change the 3% mid-term inflation target at a meeting likely to take place on Monday, in spite of lobbying by businesses for a looser monetary policy, daily Népszabadság reported on Monday.
The government and the MNB set a mid-term inflation target every three years. The last target, for 2009, was set on August 22, 2005. Finance Minister János Veres said earlier that raising the inflation target is not an option for Hungary.
MNB governor András Simor told Parliament’s Financial Committee in June that the government feels no pressure to raise the inflation target because of higher global energy and food prices. The MNB has not given up its 3% inflation target for 2009, however, assessing Hungary’s current inflationary path, CPI could be 4.2% in 2009 and reach 3% in 2010, though there is significant upward risk, Simor said.
Some market players argue that Hungary’s mid-term inflation target ought to be raised because eurozone inflation is much higher now than when the government and the MNB set the target in 2005. (MTI-Econews)