Hungary cbank gov says tightening cycle modest-WSJ

Published 12/14/2010, 02:17 AM
Updated 12/14/2010, 02:20 AM

BUDAPEST, Dec 14 (Reuters) - Hungary's central bank may not need many steps in its current rate-rising cycle, but one step is probably not enough, National Bank of Hungary (NBH) Governor Andras Simor told the Wall Street Journal.

In an interview published on Tuesday, he called the tightening cycle "modest" and said:

"One should not believe that a 25-basis-point increase will get inflation back to target... That doesn't necessarily mean that we need many steps."

The central bank delivered a surprise rate hike on Nov. 29, its first after a six-month pause, raising rates to 5.5 percent from an all-time low of 5.25 percent. (Reporting by Marton Dunai; Editing by Neil Fullick)

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