BUDAPEST (Reuters) - Hungary should not rush into further cuts in payroll taxes after steep reductions agreed with employers for 2017, Economy Minister Mihaly Varga said on Saturday.

"Our budget deficit (target) is 2.4 percent, but if we want to reduce the vulnerability of the economy, then we need to lower public debt more quickly," Varga told an annual meeting of economists.

Varga added that policy makers should also wait to see whether the U.S. Federal Reserve raises interest rates shortly and review local fiscal developments in the first eight months before considering any further payroll tax cuts.

(Reporting by Gergely Szakacs; editing by Jason Neely)

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