Hungary: Matolcsy Becomes New Central Bank Governor

People ♦ Published: March 1, 2013; 19:27 ♦ (Vindobona)

Prime Minister Orbán nominated the former National Economy Minister as the new governor of the MNB (National Bank of Hungary). Experts are concerned about the stability of the Forinth.

Hungary: Matolcsy Becomes New Central Bank Governor / Picture: © Wikipedia / kormany.hu

The nomination of György Matolcsy as the new Central Bank Governor comes as no surprise. The independence of the MNB from the government, however, is now history even if the state constitution and the EU-regulations allow for it. Because of personnel replacement within the Monetary Council, decisions concerning the prime rate have already been made by the government during the last…