Hungary cbank reaffirms support for government policy

BUDAPEST Thu May 15, 2014 6:10am EDT

Related Topics

BUDAPEST May 15 (Reuters) - Hungary's central bank adopted a new statute on Thursday, reaffirming its commitment to support government economic policy without jeopardising its primary objective of reaching and maintaining price stability.

The bank is led by Governor Gyorgy Matolcsy, a strong ally of Prime Minister Viktor Orban, who was reelected for another four-year term in a landslide last month.

"Without prejudice to its primary objective, the central bank supports the economic policy of the government using the instruments at its disposal, geared towards full employment and growth," it said in a statement.

"Cooperation between the government and the central bank could be a key driver for launching economic growth."

The bank also said it would aim to prevent turning a loss so that the state budget would not have to shore up its finances using taxpayers' money. (Reporting by Gergely Szakacs)


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.