Economy
Hungary rate-setters discuss on hold, 50-bp hike proposals - Simor
Save article
Share
We believe the fault line was drawn between the new (external) and the old (internal) members of the MPC, and in the end the four external members’ majority vote to keep rates unchanged won over the other three members.
Mostly due to uncertainties over a bailout deal with the International Monetary Fund (IMF) and the European Commission, the European Bank for Reconstruction and Development (EBRD) has slashed its growth forecast for Hungary to -1.5% from +0.5% previously for 2012.
The organisation’s recession projection is by far the most pessimistic of all major international institutions and the worst in the whole EBRD region too.In this respect, Simor noted that the central bank’s latest growth forecast released in December is for economic stagnation (with three risk courses), adding that the NBH staff ha seen no change in this regard since then.
“The majority of the council were of the view that the change in the government’s rhetoric can influence risk premia not only in the short term but also in the longer run," Simor said.
He added that strong uncertainties and high market volatility remain.
Mostly due to uncertainties over a bailout deal with the International Monetary Fund (IMF) and the European Commission, the European Bank for Reconstruction and Development (EBRD) has slashed its growth forecast for Hungary to -1.5% from +0.5% previously for 2012.
The organisation’s recession projection is by far the most pessimistic of all major international institutions and the worst in the whole EBRD region too.In this respect, Simor noted that the central bank’s latest growth forecast released in December is for economic stagnation (with three risk courses), adding that the NBH staff ha seen no change in this regard since then.
“The majority of the council were of the view that the change in the government’s rhetoric can influence risk premia not only in the short term but also in the longer run," Simor said.
He added that strong uncertainties and high market volatility remain.
