Hungarian Cabinet Seeks Control of Rate-Setting Body
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Hungary’s government, which has urged the central bank to loosen monetary policy, drafted legislation that would give Prime Minister Viktor Orban’s ruling party control of a majority of the appointments to the interest- rate setting Monetary Council.
The bill would empower Parliament’s Economy Committee, dominated by Orban’s Fidesz party, to nominate all four outside policy makers of the seven-member Monetary Council, according to an excerpt of the document the central bank e-mailed to Bloomberg News today. Parliament would approve those nominated.