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Hungary

Ecofin unlikely to press Hungary on deficit

The council of European Union finance ministers (Ecofin) is scheduled to evaluate Hungary's convergence program on July 5, and preliminary consultations do not indicate that the council will urge Hungary to speed up its budget deficit reduction plans,…

Hungary's central bank cuts base rate to 12.25%

The Monetary Council of Hungary's national bank (MNB) cut its base rate by 25 bp to 12.25% at its Monday meeting. The MNB said as a result of improving external and internal economic developments, the conditions for meeting the end-2005 inflation target…

Forex volatility in EU accession countries

This IMF Working Paper analyses foreign exchange market volatility in four Central European EU accession countries in 2001-2003. It shows that periods of high volatility seem to be cross-correlated for Hungary, Poland and Czech, Slovak Republics. It…

Hungary to submit central bank independence bill

The Hungarian government has adopted the draft of a legal amendment aimed at strengthening the independence of the National Bank of Hungary, Interfax reports. According to the draft law to be submitted to parliament, the central bank and members of its…

Student threatens to blow up central bank

A Hungarian student has threatened to blow up the National Bank of Hungary, the Courier Mail reported. The threats also included crashing a plane into the parliament building. The unnamed student said the threats were a 'joke' when arrested.

Hungarian Fin Min backs central bank intervention

The National Bank of Hungary's decision to intervene in the markets and buy bonds has been supported by the Finance Minister Csaba Laszlo. The minister shared the central banks view that there was no reason for the significant weakening in the forint…

Concern over financial watchdog reform in Hungary

The National Bank of Hungary has issued a statement, reports Kossuth Radio, stressing that there is no need to reorganise the State Supervision of Financial Institutions and saying that the regulator is carrying out its duties appropriately.

Jarai says euro would boost Hungarian economy

The president of Hungary's central bank has warned that the government must exercise control over its fiscal and economic policy if Hungary is to achieve sustained economic growth. Zsigmond Jarai told a press conference: "The adoption of the euro in 2008…

Jarai says talks underway with ECB over ERM II

Hungary's central bank governor Zsigmond Jarai said Tuesday, Interfax reported, that the MNB has begun informal talks with the ECB on Hungary's membership of the ERM II mechanism. The path to the adoption of the euro in 2008, as agreed between the…

Bundesbank: No hurry for candidates to adopt ERMII

The Bundesbank said in a report that no relaxation should be made of the Maastricht criteria for the new member states, noting that Hungary's budget deficit for 2002 was over 9% of GDP. The report, according to Interfax-Europe, said that most accession…

Oblath - Forint strengthening 'matter of time'

After receiving his official appointment to the Monetary Council of the national bank of Hungary, Gabor Oblath said reducing inflation was the highest priority for the Council. Oblath had previously resigned from the Council in January but agreed to…

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