I find it important to emphasize in this context that monetary easing in Hungary is also conditional on the evolution of global risk appetite. We have learned during the crisis that risk premia can be extremely volatile. It is therefore essential to have a robust strategy, to be prepared to cope with potential unfavorable shifts in risk perception.
To this end the Monetary Council has decided to follow a gradual approach in reducing the interest rate. Despite of the dominance of good news of the last few months becoming complacent at the current juncture would be a great mistake.