BUDAPEST, Feb 12 (Reuters) - Hungary’s inflation remains below the central bank’s target, so continued loose monetary policy is warranted, the bank’s chief economist Daniel Palotai told a conference on Monday.
Palotai, who is not a rate setter, said the benchmark base rate would stay at a record low 0.9 percent for a long time.
The National Bank of Hungary, Central Europe’s most dovish central bank, has said it would buy mortgage bonds in 2018. It also launched new interest rate swaps for banks as part of its unconventional monetary policy tool set, aimed at maintaining loose monetary conditions. (Reporting by Krisztina Than and Gergely Szakacs)