(Adds more comments, detail)
BUDAPEST, March 27 (Reuters) - Inflation in Hungary
should fall to single digits by the end of 2023, Eva Buza, a
nominee to the central bank's rate-setting Monetary Council,
said on Monday, striking a cautious tone at a parliamentary
confirmation hearing.
The National Bank of Hungary is widely expected to keep its
base rate steady at 13% on Tuesday, a Reuters poll forecast,
with analysts paring back rate cut views by the end of 2023 amid
high inflation and turmoil in the global banking sector.
All 16 economists polled between March 20 and 24 said the
NBH would leave the European Union's highest benchmark rate on
hold after a marginal decline in headline inflation to an annual
25.4% in February, by far the highest in central Europe.
Speaking at parliament's economic affairs committee
alongside Zoltan Kovacs, another nominee to the nine-member
rate-setting panel, Buza said that curbing inflation as soon as
possible was in the national interest.
"We are living in a crisis situation. However, both the
government and the central bank are committed to wrestling down
inflation," Buza told the confirmation hearing, where lawmakers
backed their nomination.
"The coordination of monetary and fiscal policy is needed to
consolidate the situation," Buza said. The new members will
succeed economists Bianka Parragh and Gyorgy Kocziszky, whose
terms expire in late March and early April.
The new appointments come at a time of turmoil in global
financial markets and as the central bank faces increased
pressure from Prime Minister Viktor Orban's government to start
lowering interest rates amid a sharp economic slowdown.
The Monetary Council has made its decisions unanimously in
recent years, so the new appointments are unlikely to swing the
balance of power within the rate-setting board.
However, both new members said they would be making their
decisions autonomously.
(Reporting by Gergely Szakacs; Editing by Alex Richardson)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.