Draghi supports Hungary's embattled central bank

[December 07, 2012]  BUDAPEST, Hungary (AP) -- European Central Bank President Mario Draghi has emphasized the importance of the independence of central banks while paying tribute to his Hungarian counterpart, often at odds with Hungary's government over interest rates.

The Hungarian government has been trying to put greater control on the National Bank of Hungary, but under international pressure -- including from the ECB -- has relented.

Speaking Friday in the Hungarian capital, Draghi also highlighted the inflation risks of cutting interest rates to stimulate economic growth.

The National Bank of Hungary has lowered its key interest rate during each of the last four months, with NBH President Andras Simor and his two deputies always outvoted by the four, government-backed members of the rate-setting Monetary Council.

[Associated Press]

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