BUDAPEST: Hungary's central bank is unlikely to pursue unconventional monetary policy tools and it should only lower its foreign currency reserves carefully, parallel with a declining external debt, a future monetary policy maker said on Monday.
"I do not believe the central bank wishes to use non-conventional tools," Economy Ministry State Scretary Gyula Pleschinger, nominated for the central bank's policy making Monetary Council on Monday, told a mandatory parliament hearing.
He added that the government's sway over monetary policy was nothing new and was harmless.
"If you look at it that way, theoretically, the government has had a majority at the central bank," he said. "Even so, no decisions have been made that would have questioned either the central bank's independence or rational monetary policy making."
If Pleschinger is confirmed by parliament later on Monday, appointees of the prime minister or the Fidesz-controlled parliament will outnumber other members 7 to 2 in the council.
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