BUDAPEST, March 26 (Reuters) - Hungary’s forint, which is skirting two-year lows, is still “very far” from levels that would pose risks to financial stability and could possibly force the central bank to step in, deputy governor Adam Balog was quoted as saying on Wednesday.
In an interview with local news website index.hu, Balog was also cited as saying the bank was near the end of its monetary easing cycle after cutting rates by another 10 basis points to 2.6 percent on Tuesday.
When asked if a one-off rate hike was plausible in a market stress scenario, Balog said: “At the moment I do not see this as a realistic option, for this the environment should deteriorate very substantially.”
Balog also repeated a message of the bank from Tuesday that if the international market sentiment worsens significantly, that could lead to a halt in rate cuts. (Reporting by Marton Dunai and Krisztina Than)