The Vice Governor of the National Bank of Hungary, Ferenc Karvalits, says with interest rates just above 5 percent, the bank is in a position to cut interest rates further if the economy needs it.
As markets await today's budget announcement a local website is reporting the Budapest time plans tough public sector job -- May impose attacks on the energy sector to bring its budget deficit. Cut to below 3% of GDP but it is not renewing a twenty billion euros funding agreement with the -- joining us now to discuss. The national bank of -- vice governor patterns come out that -- Imus come governments made substantial. At fort stool it to balance. The government a budget position on. That is us out of fear for about cyclically adjusted budget deficit Andy's here to -- it. One half percent. Which As markets await today's budget announcement a local website is reporting the Budapest time plans tough public sector job -- May impose attacks on the energy sector to bring its budget deficit. Cut to below 3% of GDP but it is not renewing a twenty billion euros funding agreement with the -- joining us now to discuss. The national bank of -- vice governor patterns come out that -- Imus come out as many thanks for talking with -- can hungry get its deficit and it's debt to our wants to be without the help of international lenders. I think the government's commitment. To cut the budget deficit to 3%. Is a serious run and you state provide the appropriate measures. To do so it didn't generate. A market confidence. And there. You say that you can use a serious is it and you'll view realists that. In the last two years behind it the end governments made substantial. At fort stool it to balance. The government a budget position on. That is us out of fear for about cyclically adjusted budget deficit Andy's here to -- it. One half percent. Which is in any time a show called president is very strong. So they each. Position is goods in terms of through Lewis. And that therefore I assume that's and a meet some -- measures on the expenditure side. They can. Keep one -- Due to budget program. Mean DE DP -- excesses that he's put it put program. You do you see sufficient among the from the public markets is that is that not a danger that you're going to be forced to pay huge component as a result of the decision to exclude international lenders. That. If we saw in the last. Yes you stick. He's got for -- his caddie. And and keep on top that's truck then the markets. Can you provide the funding. What will be assigned to use the you have reassured investors. When it's wet when the budget details are released what what signs even people. You know that. Vis -- monster -- months the government test of and you would -- imagine being. Portfolios so the markets Arafat might be by -- reacting to a -- development so. You have to -- pretty heavily at those that date has. I'm -- governor this morning suggested that even -- 30% stronger Swiss -- would not cause problems for the financial system do do you agree with that. Given that leverage your household mortgages Iraq so strongly. Or ability each household it's collected a huge. Now on -- positioning in ethics. And that the depreciation of the Flint against the -- sank in the last. One half yes generated. An enormous pressure on the household let's eats it and it's caused definition of the legal port authority of the banking sector or that's who. That's the other addict. How -- it's any good to payback the at a loss. And the banking sector and capitalization on productivity is strong enough it's cool feed -- situation. So the -- cause and the banking sector of the net that can manage no problem what why do you not see stability issues. Why don't you why you think that the these suggestions. That the Central Bank provided stimulus as we've seen him in in in the US sanity in the UK what do you think that is not feasible. Bad in kings of comedy. The Steelers have. The -- it's announced five. -- 5%. So you do not say is the program but they didn't age very economies sense -- banks face that they had little five. Who for foreign terrorists apricots if the conditions are appropriate he can -- the want to conditions through rate cuts. Are you worried about Saddam combines leadership for seven race that says that times -- sparing you worried about government and defense. I think that the economy continues. Changing and they want to put -- in order not functioning both of these seems to push on. Oil demand this would -- the market was -- of fungal. The mission of both. -- product which is defined appropriately and and in Google. We have tools. Focus on price stability -- a -- of the financial system. Or those guys who did join -- was sold via -- comic it would these missions and that tried to Nazis a challenge from coming from coming from that. Either and you don't see a challenge from from government -- defense. I strongly believe that the book via full ability. -- the mission. To sort of finish up breasts are we here on on on lead the windfall tax and reports suggesting. How we may see a number of banks leaving what what is what is the message to the bank is sending out on this now. though the bank Levy puts pressure on the profitability of this of the banking sector lending community institutions. I still believe it's adding that measure and I still believe that the number of them growth outlook of Hungary and be -- a sense at least an advantage again. May add these Asia and Hungary. A strategy feel it's for those -- institutions and therefore get long term commitment to steer dad. I do not expect. Blood banks to leave the currency on middle ground -- just fine deal would business. In Hungary -- it was economists said many thanks for talking with -- come on it's vice governor of the national bank. A hungry.