Hungary's cbank chief sees more room for rate cut
BUDAPEST Nov 28 (Reuters) - Hungary's central bank still has some room to further reduce interest rates, especially as Hungarian inflation is low compared to the rest of Central Eastern Europe, National Bank of Hungary Governor Gyorgy Matolcsy said on Thursday.
Matolcsy said the Hungarian central bank conducted flexible monetary policy which had only one anchor, the bank's 3 percent medium-term inflation target.
"There are no internal reasons (for a rate increase) as long as the inflation targeting (system) projects an inflation outlook in the medium term that does not justify it (a rate hike)," Matolcsy told a conference.
He said the bank may be forced to raise interest rates if there is an external shock. But he said at the moment, the bank projected low inflation pressure for the medium term which warranted loose monetary policy. (Reporting by Gergely Szakacs and Krisztina Than)
- Malaysia plane search straddles continent as police focus on crew |
- Crimeans vote over 90 percent to quit Ukraine for Russia |
- Crimea asks to join Russia after Soviet-style vote |
- Ukraine, Russia agree Crimea truce until March 21-Ukraine minister
- Stocks near one-month low as western sanctions on Russia loom |