Independence Under Fire

On June 25, Hungarian Prime Minister Gordon Bajnai stated that he has complete confidence in National Bank of Hungary (NBH) Governor Andras Simor, and called Simor the victim of a slander campaign. This defence from Bajnai came in response to calls from both the opposition Fidesz party and several senior Socialist Party politicians who have called on Simor to resign, citing allegations of foreign investments on which the NBH governor may have avoided paying Hungarian taxes. Both Simor and Bajnai have previously argued that Fidesz and the renegade Socialists' criticism of Simor was politically motivated, aimed at further profiting from the Hungarian government's economic policy woes. Going forward, we highlight that Simor's professional future will be bolstered by Bajnai's firm endorsement, but caution that the precedent of party politicians trying to oust the NBH governor could be a concerning sign of political attempts to influence monetary policy.

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