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Virag Reiterates Base Rate Sufficient to Rein in CPI

HUNGARY

Summary of comments from NBH Deputy Governor Virag:

  • High inflation damages growth
  • Policy must balance C/A, inflation, growth
  • Current account may improve at faster pace than some expect as energy consumption drops, prices drop after spiking
  • Hungary is approaching inflation peak
  • Inflation may grow in coming months, albeit at slower pace than earlier
  • Base rate sufficient to deal with CPI risks
  • NBH to use new tools until risk profile improves (BBG)

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