Matolcsy: Surprise, surprise, surprise

English2021. jún. 2.GOVERNOR MATOLCSY100WORDS

I perfectly agree with Bill Dudley that the Fed will have to raise rates and they will go much higher than investors anticipate. /Bloomberg, 5/11/2021/


Investors are indeed focused on the last business cycle, in which the federal funds rate never exceeded 2.5%. This time, however, short-term memories are not good enough to rely on. We had a once-in-a-century pandemic and we are on the right track to make a very quick comeback you have probably never seen before.

This is the beginning of a completely different business cycle.

Besides, changing but still accommodative fiscal and monetary policies will stay with us for a long period of time. This means that new economic and financial shocks can be handled in the future.

Governor Matolcsy, MNB, the Central Bank of Hungary

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