Hungarian monetary tightening is justified, finance minister says

Started in June

  

BUDAPEST, Oct 19 (Reuters) - Hungary's monetary policy tightening that started in June is "justified", Finance Minister Mihaly Varga said on Tuesday, adding that it was still to be seen whether the current inflation rise would be a transitionary or a lasting phenomenon.

Varga said the government expected inflation to decline from early next year, adding that a fiscal tightening from next year would have to be a gradual process.

The central bank will hold a rate-setting meeting later on Tuesday where it is expected to raise interest rates again.

(Reporting by Krisztina Than)


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