Hungary's central bank will be able to cut the base interest rate before the government reaches a financial aid agreement with the IMF and the EU, rate setters Gyorgy Kocziszky and Ferenc Gerhardt told Dow Jones in an interview. Kocziszky and Gerhardt are two of the four members of the banks rate-setting board appointed by the parliament in March 2011. They consider that once the government secures the deal, the bank will ease the monetary policy by cutting the rate gradually. Hungarys benchmark interest rate stands at 7% and is the highest in the EU. Hungary seeks to secure financial assistance of between EUR 15-20bn from the IMF and the EU. However, negotiations could be launched only after Hungary makes progress towards a timely and sustainable correction of its excessive budget deficit as well as ensuring the independence of the central bank. |
Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more
The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more
The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more