Central Bank’s governor recommends 7.7% private pay raise

Hungary’s central bank (MNB) finds that a 7.7% wage raise in the private sphere in 2008 would harmonize with the inflation target of 5% on average and a 2.7% growth in productivity, announced MNB governor András Simor.

Since the past few years have shown that reality always produces a wage rise 1.5% – 2% higher than the raise agreed on in the National Council of Interest Reconciliation (OÉT), the 7.7% can be achieved only if OÉT agrees on a raise of about 6%. As for the Euro adoption, Simor said that it is worth pondering the target date when we know how the 2008 budget law was executed, what the content of the accepted 2009 budget law is and whether the 3% inflation target set for 2009 seems achievable – i.e. at the end of 2008 or at the beginning of 2009. (Gazdasági Rádió)

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Foreign Affairs