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Hungary MPC to Eye Forint, Markets in Decision, Reuters Says

Feb. 21 (Bloomberg) -- Hungary’s rate-setting Monetary Council will have to “keep in mind” the forint’s recent strengthening and the easing of market tensions at its February policy meeting, Reuters reported yesterday, citing central bank Deputy Governor Ferenc Karvalits.

Talks with the International Monetary Fund and the European Union on financial assistance will be difficult as the international lenders will want to see guarantees of faster long-term growth and a sustainable debt path, the newswire cited Karvalits as saying.

Asked about potential rate cuts after a financing agreement is reached, Karvalits said internal and external uncertainties were too numerous to forecast such a move, adding that the bank’s Inflation Report due in March will be key, according to the report.

To contact the reporter on this story: Edith Balazs in Budapest at

To contact the editor responsible for this story: James M. Gomez at

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