BUDAPEST, Sept 6 (Reuters) - Hungary's economy would need much lower interest rates but the central bank can ease policy further only if it does not pose a risk to financial stability, Governor Andras Simor told public television M1 on Sunday.
Simor said an improvement in Hungary's financial balances and stability has allowed the bank to reduce its key base rate in the past months. The bank has cut rates by a cumulative 150 basis points in July and August, to 8.0 percent.
'I think the base rate can be cut further in the future only if, and only to an extent which Hungary's financial stability allows,' Simor said.
He also said talks with the International Monetary Fund, as part of the IMF's review of Hungary's performance, had been closed successfully, but he did not reveal any more details.
(Reporting by Krisztina Than ) Keywords: HUNGARY CENTRALBANK/ (krisztina.than@reuters.com; +36 1 327 4745; Reuters Messaging: krisztina.than.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Simor said an improvement in Hungary's financial balances and stability has allowed the bank to reduce its key base rate in the past months. The bank has cut rates by a cumulative 150 basis points in July and August, to 8.0 percent.
'I think the base rate can be cut further in the future only if, and only to an extent which Hungary's financial stability allows,' Simor said.
He also said talks with the International Monetary Fund, as part of the IMF's review of Hungary's performance, had been closed successfully, but he did not reveal any more details.
(Reporting by Krisztina Than ) Keywords: HUNGARY CENTRALBANK/ (krisztina.than@reuters.com; +36 1 327 4745; Reuters Messaging: krisztina.than.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.