The governor of Hungary’s central bank says the country’s sovereign rating should receive an upgrade this year as reward for what he describes as a stabilized monetary policy. György Matolcsy says the improvement has been consistent ever since the country’s fortunes reached bottom in 2010, forcing the government into asking for financial aid from international institutions. Matolcsy added that while the economy is now performing better, the situation remains vulnerable. Fortunately, the public deficit has remained below the 3 percent of GDP demanded by the EU, but high public debt and EU fragility are risk factors for Hungary, he says. The Hungarian National Bank is predicting that inflation will stay below 1 percent in 2015, primarily because of low fuel prices.
