(Bloomberg) -- Hungarian Economy Minister Janos
Koka said the forint's trading limits are hobbling the central
bank's ability to cut the European Union's highest inflation
rate, the first Cabinet member to suggest they may need to be
abolished.
Scrapping the trading band would allow the forint to
strengthen enough to cut import prices and bring down the annual
inflation rate, at 8.5 percent in May. Koka's comments contrast
those of central bank Governor Andras Simor, who says inflation
can be slowed without freeing the forint, and Finance Minister
Janos Veres, who says the Cabinet is not ready to lift the
limits.
Read more at Bloomberg Emerging Markets News
Koka said the forint's trading limits are hobbling the central
bank's ability to cut the European Union's highest inflation
rate, the first Cabinet member to suggest they may need to be
abolished.
Scrapping the trading band would allow the forint to
strengthen enough to cut import prices and bring down the annual
inflation rate, at 8.5 percent in May. Koka's comments contrast
those of central bank Governor Andras Simor, who says inflation
can be slowed without freeing the forint, and Finance Minister
Janos Veres, who says the Cabinet is not ready to lift the
limits.
Read more at Bloomberg Emerging Markets News
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