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Simor calls heavy fluctuation of forint's rate harmful

The Hungarian Central Bank (MNB) has no exchange rate target, but the recent sharp swings of the forint's exchange rate were harmful, MNB governor András Simor told the press.

The central bank has the tools to moderate these large fluctuations, Simor said, adding that it was difficult for economic players to adapt to these swings in the rate.

The IMF would not consider any level of (the forint's) exchange rate level as worrying, James Morsink, the head of an International Monetary Fund delegation visiting Hungary said.

Morsink said the NBH was right in continuously cutting the key rate, adding that he sees a chance for moderate rate cuts, in line with the reduction of financial risks in the future. (MTI – Econews)