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Simor rejects MNB salary cap drive

It would be a popular but also a wrong and dangerous move by the government to cap the salaries of Hungary’s central bank managers, which would infringe on the independence of the MNB, governor András Simon said.

Simor commented on Fidesz plans announced earlier this month to reduce the salaries of MNB leaders in line with an across-the-board wage spending cut in the public sector.

In a statement, Simor reminded that the government would have to amend the Central Bank Act to cut the salaries of MNB leaders and dubbed the plan “not a nice thing”.

Prime Minister Viktor Orbán has criticized Simor and the MNB for acting slowly to reduce the benchmark rate and Simor, in particular, for having offshore investments.

Simor, whose term ends in 2013, has rejected government demands to resign. (