MNB dep gov flags move from 'aggressive' to 'gradual' policy phase

MNB

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National Bank of Hungary (MNB) deputy-governor Barnabás Virág said monetary policy is moving from the "aggressive" to the "gradual" phase at a conference organized by business daily Világgazdaság on Thursday, according to a report by state news wire MTI.

Virág augured a "protracted" fight against inflation and said CPI could peak in the third quarter.

He said average annual inflation could be "around 9-10%" this year. 

At a monthly policy meeting late in April, the central bank's rate-setters had put average annual inflation "in the upper third" of the 7.5-9.8% forecast in MNB's latest quarterly Inflation Report.

Hungary's year-on-year CPI rose to 9.5% in April.

Virág said MNB data suggest first-quarter GDP growth could be "over 8%", which could put full-year growth around 4%.

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