BUDAPEST (Thomson Financial) - Hungarian monetary policymaker Csaba Csaki has said the chance of an interest rate hike in Hungary has increased after recent turmoil on the country's bond markets, reported daily Napi Gazdasag, citing a wire report.
Csaki told Bloomberg that the central bank may need to compensate higher risk premiums on emerging market assets, making a hike more likely, the paper says.
Peter Bihari, fellow policymaker on the 12-strong monetary policy council, said earlier this month that a hike to the 7.5 pct base rate would be needed to achieve the bank's 3 pct inflation target next year. Inflation was 6.9 pct last month.
This contradicts the view of two other members. Tamas Banfi, a committed dove, suggested the target should be abandoned, while Judit Nemenyi said a hike was not required, according to the paper. tf.TFN-Europe_newsdesk@thomson.com; edward.krudy@thomson.com ek1/ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.