Hungary’s Pleschinger Sees Rate Policy Stable Under New Governor

Hungary’s central bank has no room to cut the key policy rate this year, while a hike is also “unthinkable,” according to outgoing policymaker Gyula Pleschinger.

Officials have adopted a more hawkish outlook amid a surprise acceleration in inflation, after ending a series of rate cuts last year. Investors have been looking to see how that policy will evolve when Governor Gyorgy Matolcsy — as well as Pleschinger — end their terms on the Monetary Council next month.