BUDAPEST, March 13 Hungary should not undershoot
its budget deficit target this year, the central bank said on
Monday, after a lower-than-expected deficit of about 1.3 percent
of economic output in 2016 shaved 0.6 percentage point off
January-February figures indicate risks of a repeated
deficit undershoot and a loss in the pace of an expected pick-up
in growth this year, central bankers, including Deputy Governors
Marton Nagy and Laszlo Windisch said in a study.
"Monetary policy has reached its limits. Therefore, there
is increasing need for other economic stimulus effects," they
said, adding that Hungary would also need reforms to improve
competitiveness and productivity in the private sector.
(Reporting by Sandor Peto and Gergely Szakacs)