March 24, 2020 / 3:03 PM / 5 days ago

Hungary cbank deputy governor sees V shaped economic recovery as base case

BUDAPEST, March 24 (Reuters) - Hungary’s base interest rate is still the lowest in the Central European region, and monetary policy continues to be the most accommodative, Deputy Governor Marton Nagy said on Tuesday after the bank left interest rates on hold.

He said GDP growth could slow to 2-3% this year as a result of the coronavirus pandemic and its economic fallout.

“The base scenario is a V shaped recovery, for which we need to do a lot (to make it happen) .... and it is surrounded by very big uncertainty,” Nagy told an online news conference.

He said if the crisis lasts until the end of the summer, or until the autumn, then GDP growth could be much lower and in that case a U shaped recovery could become more likely.

Reporting by Gergely Szakacs and Krisztina Than

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