Economy
Bad April CPI data leaves cenbank chief unflinching about inflation targets
Járai said the CPI data released earlier in the day carried no significant new information concerning the rate outlook, but he noted that the room for further rate reductions has been narrowed by a worsening of the global economic environment in the past 1-1.5 months.
“We are not sure that this rate cutting policy can be continued," Járai told reporters at Békéscsaba (southeast Hungary), but declined to say whether he believed the easing cycle would come to an end soon.Járai said the central bank did not believe that the forint's slight weakening in recent months would significantly boost inflation. He added that it was a bigger problem that Hungary's economic growth has slowed down and that both teh current account and trade deficits were large.
Járai said the budget deficit this year would be higher than the government's target, but “not tragically higher", due to spending being shifted off the budget under public private partnership schemes.
“We are not sure that this rate cutting policy can be continued," Járai told reporters at Békéscsaba (southeast Hungary), but declined to say whether he believed the easing cycle would come to an end soon.Járai said the central bank did not believe that the forint's slight weakening in recent months would significantly boost inflation. He added that it was a bigger problem that Hungary's economic growth has slowed down and that both teh current account and trade deficits were large.
Járai said the budget deficit this year would be higher than the government's target, but “not tragically higher", due to spending being shifted off the budget under public private partnership schemes.
