Hungary Central Bank Backs Steady Rates on Trade Uncertainty (2)

Hungary’s central bank pledged not to cut interest rates any time soon due to the potential side-effects from the ongoing global trade war.

Hungary needs a “cautious and patient” monetary policy because the tariff conflict poses upside risks to inflation and is a source of financial-market volatility, particularly on emerging markets, Governor Mihaly Varga told reporters on Tuesday. He said the central bank would keep the benchmark at the current level for a “sustained period.”

He spoke after the National Bank of Hungary kept the key interest rate at 6.5% for a seventh month, as expected. That’s tied with Romania ...