The National Bank of Hungary is not planning to revise its economic growth projection after Brexit, said the deputy governor. MNB officials met with leaders of commercial banks to review developments on the money market.
“The MNB will make no changes, as this is not justified for the time being. If we look at the structure of domestic growth, we can see that right now our economy relies more on domestic demand factors,” deputy governor Márton Nagy told online news portal origo.hu.
The MNB has been preparing for both outcomes of the British referendum on whether the U.K. will stay or leave the European Union, MNB managing director Dániel Palotai said on Friday.
Projections by the central bank showed on Thursday that Hungaryʼs government deficit will reach 1.6% of GDP this year, if fiscal reserves in the Country Protection Fund are preserved.
National Economy Minister Mihály Varga said mid-June the exit of Great Britain from the European Union could slow the speed of Hungarian GDP growth by 0.3-0.4 of a percentage point.
MNB officials held consultations with the heads of leading commercial banks in Hungary on Monday to overview developments on the money market in the wake of Brexit. There has not been extraordinary movements on the markets and the operation of Hungarian banks have been orderly, according to a statement by the central bank.
