Economics
Hungary to Slow Rate Hike in Threat to Forint: Decision Guide
- Central bank plans to halve monthly base rate increases
- Forint drops close to a record low before 2pm CET decision
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Hungary is preparing to rein in the scale of its monthly interest-rate hikes, as monetary policy makers seek to avoid excessively tightening credit even as inflation accelerates. The forint dropped.
The central bank will likely raise the benchmark by 50 basis points to 5.9%, half the pace of rate hikes seen in March and April, according to the median forecast in a Bloomberg survey. The decision will be announced at 2 p.m. in Budapest on Tuesday, followed by a briefing an hour later.