Central Bank official Bálint Dancsik said the ratio of the Hungarian banks’ liquid assets, structure of financing, capital adequacy and credit portfolio are substantially better than during the 2008 crisis.
Mihály Varga and György Matolcsy agreed to hold consultations in person on a regular basis.
Central bank (NBH) rate-setters raised the base rate by 100 basis points to 10.75 percent at a policy meeting on Tuesday.
The NBH governor said that to eliminate the “last vestiges of the crisis”, Hungary will have to focus on competitiveness.
The council also decided on Tuesday to raise the O/N deposit rate by 15bp to 0.70 percent and the O/N and one-week collateralized loan rates by 15bp to 2.6 percent.
They also changed the interest rate corridor to between minus 0.25 and 2.15 percent.
NBH governor has said investment growth, job creation and cheap credit will be necessary for Hungary’s economic recovery from the coronavirus crisis.
The Council said it “supports price stability, the preservation of financial stability and the recovery of economic growth in a sustainable manner”.
In the NBH’s latest competitiveness report, Hungary’s score of 47.4 points on a scale of 0-100 is slightly higher than the average score of the other three Visegrad Group countries.
National Bank of Hungary (NBH) governor György Matolcsy has outlined 12 reforms he said would be necessary to preserve and increase Hungary’s success in the coming decade.
The Council referred to the rate cut as a “fine-tuning measure” that “supports the maintenance of price stability and the recovery of economic growth”.
Significant progress has been made in the region over the past 15 years, but local infrastructure is still not on par with that in the West. At the same time, western European companies have staked out local markets.
NBH has left the base rate unchanged at 0.90 percent at a meeting held on Tuesday.