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Hungary ready to come off IMF aid

Hungary should not need to use the remainder of its package of International Monetary Fund-led aid, though its recovery remains fragile as it returns to market financing, the central bank's deputy governor said.

The central bank will continue to aid recovery but further cuts in interest rates will have to remain predictable and gradual to maintain investor confidence, Ferenc Karvalits told the Reuters Central European Investment Summit.

Karvalits said that the central bank remains ready to continue with rate cuts after 200 basis points worth of easing to 7.5% over the past three months, but would follow a gradual approach.

Signals from the European Central Bank and the Fed show monetary tightening is still some way off and Hungary has time to gradually cut its rates and not worry about going into a tightening cycle on core markets, he added. (Reuters)