BUDAPEST: Hungary central bank has room to cut interest rates further while it is also eyeing external markets "very seriously" and would be ready to act if investor sentiment soured a rate setter told Dow Jones on Monday.
"As long as financial market and inflation developments are on our side, we do see room for further rate cuts," rate setter Gyula Pleschinger was cited as saying in an interview.
"There is still room to maneuver, but for how long, we don't know," he said. "We have no actual level where we'd say rate cuts would definitely stop."
Pleschinger said Hungary's current yields were still attractive enough to keep investors on board. But he added the bank had its policy tool kit to use if this situation changed.
"Should there be an adverse situation that is there for the longer term, the Monetary Policy Council wouldn't be shy to use them," he was cited as saying.
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