Economics
Hungary Pressured to Hike Key Rate as War Upends Policy
- Economists see 40 basis-point hike Thursday to shield forint
- Currency has been among worst-hit from war in Ukraine
This article is for subscribers only.
The Hungarian central bank is coming under pressure to ditch previous monetary-policy guidance and hike the key interest rate to shore up one of the world’s most badly hit currencies in the wake of Russia’s invasion of Ukraine.
Policy makers may increase the 1-week deposit rate on Thursday by 40 basis points to 5%, according to the median estimate of nine economists in a Bloomberg survey. Prior to the start of Russia’s attack last week, all forecasts pointed to a no change in what is already the highest key interest rate in the European Union.