Hungarian Opinion: National Bank’s Rate Hikes Deemed Necessary

  • 3 Sep 2021 2:56 PM
  • BudaPost
Hungarian Opinion: National Bank’s Rate Hikes Deemed Necessary
An independent economist welcomes the National Bank’s base interest rate hikes and the announcement of incremental tapering.

He believes that returning to more orthodox monetary measures will help Hungary prepare for future financial turmoil.

On Portfolio, Péter Kiss welcomes the National Bank’s return to orthodox monetary policy, i.e. gradual rate hikes and the announcement that it may soon slow down the pace of the large scale purchase of government bonds. Kiss thinks that fast GDP growth  is making the prolongation of quantitative easing unnecessary.

These steps will bolster the credibility of the National Bank, while at the same time preparing the Hungarian economy for the likely negative impacts of the US tapering that will be unavoidable, sooner or later, Kiss believes.
 

This opinion does not necessarily represent the views of XpatLoop.com or the publisher.

Your opinions are welcome too - for editorial review before possible publication online. 

Click here to Share Your Story

  • How does this content make you feel?

XpatLoop Media Partner

BudaPost

Launched in May 2011 to provide a balanced picture of matters covered in Hungary’s national press. Their aim is to make it easier for English-speakers to understand where this country is now and where it’s heading according to the full spectrum of media opinions.

Explore More Reports