Matolcsy Sees Room For Further Interest Ratecut In Hungary
- 21 Nov 2013 8:00 AM
There is further room to reduce the central bank’s base rate, the governor of the National Bank of Hungary, György Matolcsy, said. The base interest currently stands at a record low of 3.4%. Matolcsy told a conference on the bank’s credit for growth scheme that almost all central banks started unorthodox policies after the 2008 crisis and the Hungarian government also applied such policies from mid-2010.
He said the NBH’s lending for growth scheme will continue and will get new impetus from the spring or summer of 2014, after its current fine-tuning is completed. The scheme’s first phase was a success, he added.
The scheme has been possible as a result of the turn in Hungary’s economic policy in 2010, Matolcsy said. The introduction of flat income tax was a core element of this, he added.
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MTI photo: Szilárd Koszticsák
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