New MNB deputy head sees no reason to change cautious stance on rate cuts
There is no reason for the central bank to change its cautious stance on interest rate cuts, new vice president of the National Bank of Hungary Ádám Balog told Dow Jones wire service on Wednesday, adding that the cautious and gradual interest rates cuts have so far proved successful. Balog noted that the recent fluctuations of the forint exchange rate are “unwelcome,” and the recent fluctuations are not justified by economic fundamentals. He pointed out, however, that the central bank has no exchange rate target, the forint rate is determined exclusively by demand and supply factors. Monetary Council members do not take into account the short-term fluctuations of the forint rate, only the long-term trend and its effect on inflation, Balog added. Balog emphasized that the Hungarian financial system is stable and resilient to external shocks. Balog's comments followed the recent considerable weakening of the forint, which rose to above 305 to the euro for the first time in nine months on Tuesday.
ADVERTISEMENT
Business Confidence Worsens, Consumer Confidence Improves
Parliament Negates Mandatory Membership in MOK
Haulier Koncsek Trans Invests HUF 150 mln in Garage Upgrade
Budapest Leaders Unveil Plans to Scale Back Traffic on Thoro...
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.
