Hungary central bank sees tensions with govt

Hungary may be able to cut interest rates further if inflation comes down as expected, but tensions between the central bank and the government will limit the scope for rate reductions, central bank president Zsigmond Jarai said.

Jarai told journalists that Hungary is on track to achieve its target of an inflation rate of 6 pct at the end of this year and 4 pct at end-2005.

"If so, we might have a chance to cut rates further in future, but the fighting about the central bank does not help us,"

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