December 14, 2010 / 11:19 AM / 7 years ago

ECB warns Hungary govt against meddling with cbank

BUDAPEST, Dec 14 (Reuters) - The European Central Bank (ECB) warned Hungary on Tuesday that planned changes to central bank law coupled with government criticism of the bank could be seen as an attempt to influence its policymaking.

“As the ECB has consistently noted in its Convergence Reports, any such influence would be contrary to Article 130 of the Treaty which requires governments of the Members States to respect the principle of central bank independence,” it said in its opinion on Hungary’s latest law amendment plans.

The government, which has criticised the bank’s (NBH) rate increase last month, plans to give a parliamentary committee control of bank appointments next year, effectively giving the government control of the majority of seats on the Monetary Council.

Reporting by Sandor Peto; editing by Patrick Graham

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