*  *  *  Good morning Ladies and Gentlemen, I am delighted to be here today at the Middle East Financial Services Summit, which is being held in Bahrain for the second consecutive year. It is indeed my pleasure to welcome you all here.
A given change in the exchange rate has a smaller effect on output and hence on inflation as in the past. A weakening of the HUF increases household indebtness, which causes a drop in the domestic demand, weakening the effect of stronger net exports.