“I don’t want to preface the matter by saying that competition is fierce, but I think it is fierce and volatile,” former central bank governor György Sorani says on the Dela radio show. Identifying the monitors of fiscal and monetary policy – the Governor of the Central Bank, the Minister of Finance and the Minister of Economic Development – whose activities are most harmful to the Hungarian economy. According to him, the renewed uproar in recent days is only related to who is responsible for the rise in inflation last year.
Giorgi Sorani He has the answer: the government and the central bank, according to him, share the responsibility in a fraternal manner. According to the former MNB president, the tense relationship between the central bank and the Council of Ministers may continue, as the former will not hesitate and will slow down interest rate cuts in the event of a possible significant weakness of the forint, while the government opposed this. To this.
According to Surani, the country is not going through a crisis, but the expected decline in real wages of 5% to 6% on average for this year carries with it a serious struggle.
At Della, we also talked about why it doesn’t mean the end of the world if the Hungarian currency exchange rate exceeds 400 HUF. We also discovered the extent of the Central Bank’s loss – that is, the increase in its losses – by retaining part of its gold reserves, and why a low interest rate of 0 or 1 percent must be paid on the Central Bank’s mandatory reserves, and why the government’s strategy is that it intends to replace European Union funds that have not yet arrived, especially with the flow of Working capital from the East.
