Hungary's central bank said Tuesday that incoming data points to a more moderate inflation outlook as the stronger forint helps control price growth.
The Monetary Council is watching for persistence in the decrease of risk premia while maintaining a cautious, data-driven approach to rate policy.
Governor Mihaly Varga told reporters that the drop in risk premia is widening the room for monetary policy action.
The bank remains committed to reaching its inflation target sustainably. Fiscal risks and commodity prices pose upside risks to inflation.
