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Hungary Shocks With Hawkish Message After Restrained Rate Hike

  • Central bank’s 30 basis-point increase matched survey estimate
  • Forint surged after statement outlined further rate hikes
Updated on

Hungary followed a restrained interest-rate hike that underwhelmed markets with a surprisingly hawkish message, including a pledge to raise one of its key rate this week to shield the currency. The forint surged against the euro.

The central bank increased the benchmark rate by 30 basis points to 2.1%, double the pace of tightening in September and October and matching the median estimate in a Bloomberg survey.