The risks would not be worth the potential minimal benefit such a move could provide, he added. Pleschinger noted that in the upcoming rate decisions, factors of the external environment could be taken into consideration to a greater extent than before.

He also said that the forint exchange rate does not constitute a threat to the inflation target, adding that the bank does not have an exchange rate target. Calculations by the National Bank of Hungary show the inflation target is not under threat if the exchange rate steadily remains in the weaker part of its current band of 305-315 forints to the euro, he said.

The minutes of Monetary Council meetings reveal that Pleschinger has been voting for a smaller rate cut than the majority of council members since mid-2013, and he voted for keeping the base rate unchanged at the latest ratesetting meeting in February.

Source www.hungarymatters.hu

Follow that link to sign-up for MTI’s twice-daily newsletter.