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UPDATE 2-Hungary rate setters met to discuss fin. stability

Published 03/07/2009, 10:59 AM
EUR/HUF
-

* Hungary rate setters held non-regular meeting on Friday

* Panel discussed how to strengthen financial stability

* Monetary Council made no decisions at meeting

(Adds further comment from spokeswoman)

By Sandor Peto

BUDAPEST, March 7 (Reuters) - The Hungarian central bank's (NBH) Monetary Council held a non-regular meeting late on Friday where it discussed how to strengthen financial stability, NBH spokeswoman Nora Hevesi told Reuters on Saturday.

NBH Governor Andras Simor disrupted his holiday to take part in the meeting.

"No decision was made at the meeting," the spokeswoman said.

"The Monetary Council discussed how financial stability can be strengthened, by changing interest rates or by any other way," she said.

The Monetary Council holds two regular meetings a month, a rate setting and a non-rate setting meeting. It will hold its next regular rate-setting meeting on March 23.

Hungary's forint

Some investors took short bets against the forint using the Czech crown and the Polish zloty, currencies of economies viewed as having stronger fundamentals and less reliance on foreign financing than Hungary.

Prime Minister Ferenc Gyurcsany said at a news conference on Saturday that the government was watching the forint.

"The Hungarian forint moved together with the Czech crown all day yesterday," he said, after meeting Poul Nyrup Rasmussen, president of the Party of European Socialists.

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Rasmussen said his party would support in the European Parliament Gyurcsany's recent proposal for a fast track adoption of the euro by EU members which had not yet joined the single currency, and increased support to the battered eastern members of the bloc.

"We will not accept a new split in Europe," Rasmussen said.

European Central Bank chief Jean-Claude Trichet earlier this week rejected the call to loosen the terms for moving towards the euro zone. (Reporting by Sandor Peto, editing by Mike Peacock)

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