BUDAPEST, Dec 2 (Reuters) - Hungary's central bank must be cautious in easing policy as too fast rate cuts could lead to sharp forint falls in case global market conditions suddenly turn negative, the bank's Governor Andras Simor said.
Simor told a parliamentary committee on Wednesday that further rate cuts could come if the inflation outlook and Hungary's risk assessment allows.
"If monetary policy in this situation eases too quickly, then in case of an unfavourable external shock a sudden sharp weakening of the (forint) exchange rate could cause problems for the economy," Simor said.
The bank cut interest rates by 50 basis points to 6.5
percent last week
(Reporting by Krisztina Than; Editing by Ron Askew)
((krisztina.than@reuters.com; tel +36 1 327 47 45; rme krisztina.than@reuters.com.net))