ECB's steps alone would not justify rate cut in Hungary -cbank

NYIREGYHAZA, Hungary, Sept 5 Fri Sep 5, 2014 7:57am EDT

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NYIREGYHAZA, Hungary, Sept 5 (Reuters) - The ECB's latest steps to push money into the euro zone economy alone would not justify a rate cut in Hungary but could help offset other negative market risks such as the Russia-Ukraine conflict, the chief economist of the National Bank of Hungary said on Friday.

Daniel Palotai also told Reuters that loose monetary conditions in Hungary could remain until the end of 2015 based on current knowledge.

The central bank said in July that it ended its easing cycle and rates could remain at 2.1 percent in a lasting way.

"All in all, I can say that the room of manoeuvre in Hungarian monetary policy has not changed in any significant way due to this (ECB's move) but the ECB's step could sufficiently offset other negative market developments," Palotai said on the sidelines of a conference of economists in eastern Hungary. (Reporting by Krisztina Than)

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