Economy
Hungary EcoMin slams c.bank for rate hike
“The rate hike impedes the healthy economic growth of Hungary," the Economy Ministry said in a statement.
It also said the move is contrary to what is happening in other EU member states, adding that the European Central Bank (ECB) and other central banks are lowering their benchmark rates, thus fostering the growth of their respective countries.
The ministry pointed out that higher rates primarily hurt local small and medium-sized enterprises, increasing their competitive disadvantage and hindering them in advancing their own development and GDP growth.
“Hungary aims to provide one of the most competitive economic environments of the EU after the crisis. This is why it had previously consulted with NBH Governor András Simor about the monetary tools that may be implemented to foster economic growth, similarly to how the large central banks of the world, e.g. the European Central Bank, the Federal Reserve or the Bank of England did," the ministry concluded.
It also said the move is contrary to what is happening in other EU member states, adding that the European Central Bank (ECB) and other central banks are lowering their benchmark rates, thus fostering the growth of their respective countries.
The ministry pointed out that higher rates primarily hurt local small and medium-sized enterprises, increasing their competitive disadvantage and hindering them in advancing their own development and GDP growth.
“Hungary aims to provide one of the most competitive economic environments of the EU after the crisis. This is why it had previously consulted with NBH Governor András Simor about the monetary tools that may be implemented to foster economic growth, similarly to how the large central banks of the world, e.g. the European Central Bank, the Federal Reserve or the Bank of England did," the ministry concluded.
