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Simor sees “a lot of risks” in gov’t fiscal policies

Many of the Hungarian government's fiscal policies are risky, National Bank of Hungary governor András Simor said at a conference organized by Euromoney in Vienna.

“I think there are a lot of risks in the Hungarian government’s fiscal policies,” Simor said, without elaborating. “It's not my job to comment on politics,” he added.

MNB rate-setters started a tightening cycle in November, raising the central bank's key rate for the first time since October 2008. The bank's Monetary Council cited the need to meet the mid-term inflation target and financial stability considerations when explaining their decisions.

The Council will hold there next rate-setting meeting on January 24.

Simor said Hungary's economy was coming out of the recession more slowly than its neighbors but GDP growth would be around 3% in 2011.

The MNB raised its GDP growth forecast for 2011 from 2.8% to 3.1% in its Quarterly Inflation Report published at the end of November. (MTI – Econews)