Simor Says Hungary Monetary Stimulus Would Damage Economy

The Hungarian Cabinet pushing through a plan to boost growth through monetary stimulus under a new central bank chief would damage the economy, outgoing Magyar Nemzeti Bank President Andras Simor said.

The central bank has worked to reduce policy unpredictability in Hungary, the single biggest difficulty for the economy, Simor told reporters in his office in Budapest yesterday. Using monetary stimulus would also hurt the bank’s credibility, said Simor, whose six-year term ends on March 3.