Forint Drops to Four-Week Low on Hungary Central Bank Outlook

The forint fell to its weakest in four weeks on speculation the central bank will keep cutting interest rates and may take other steps to ease monetary policy after a new chief takes over next week.

Hungary’s currency declined for a second day after the Magyar Nemzeti Bank cut rates for the seventh month to a record low yesterday at the last meeting before bank President Andras Simor’s term ends this week. Economy Minister Gyorgy Matolcsy, who has urged policy makers to strengthen their support for economic growth, will take over from Simor next week, Napi Gazdasag newspaper saidtoday, matching earlier reports.