Hungary Monetary-Policy Dialogue Ebbs, Simor Tells Nepszabadsag

Hungary’s monetary policy makers are becoming less open to dialogue and professional debate, Magyar Nemzeti Bank President Andras Simor said.

“I noticed at the beginning of my term that dialog among Monetary Council members is less than what I’d regard optimal -- and willingness for debate has declined, deteriorated further recently,” Simor said in an interview with the daily Nepszabadsag, published today.

The president, whose six-year term ends next year, argued that Council members who supported recent interest-rate cuts “overestimate” the impact of monetary easing on economic growth or lending and warned that the rate cuts have led to a rise in inflation expectations, the Budapest-based newspaper reported.

The central bank may lower the level of its foreign- currency reserves when the external debt level declines, Simor said, adding that currently the amount of reserves was appropriate.

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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