November 10, 2014 / 2:46 PM / 5 years ago

Hungary cbank: fx loan conversion won't affect monetary policy

BUDAPEST, Nov 10 (Reuters) - Hungary’s impending conversion about 8 billion euros worth of foreign currency denominated household loans to forints will not affect monetary policy in the short term but allow the central bank to focus more on fundamentals, it said on Monday.

Central bank Director Daniel Palotai told a background briefing that the conversion will strengthen the monetary transmission channels as nearly households will now hold forint loans and will make economic decisions accordingly.

Vice Governor Adam Balog added that there will be no immediate impact on the bank’s monetary policy decisions, but over the long term it will be able to focus more on economic fundamentals and the “real needs of the economy.” (Reporting by Marton Dunai and Gergely Szakacs)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below