Though the National Bank of Hungary and the market were surprised by the slowdown in inflation in November, the central bank will continue a very cautious rate policy, because foreign investors must be convinced that it understands the risk of rate reductions, MNB governor András Simor said at an event organized by the American Chamber of Commerce on Thursday.
Consumer prices rose 4.2pc year-on-year in November, the Central Statistics Office (KSH) said on Thursday. Analysts had put the figure at about 4.6%. Asked about a scenario in which foreign investors stop buying Hungarian government securities, Simor said in such as case a stand-by loan Hungary received from the IMF would cover its external financing requirement. (MTI-Eco)