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Markets
Economics

Hungary Plans More Hikes to Boost Forint, Battle Inflation

  • Central bank raises 1-week rate by 50 basis points in surprise
  • Rate hike’s effect is short-lived as forint reverses gains
Pedestrians in the Vaci street shopping district in Budapest.

Pedestrians in the Vaci street shopping district in Budapest.

Photographer: Akos Stiller/Bloomberg
Updated on

Hungary vowed to keep tightening monetary policy after the central bank unexpectedly raised the key interest rate just days after the forint hit a record low.

The one-week deposit rate was lifted by 50 basis points to 7.25% on Thursday, the second hike in three weeks. All economists in a Bloomberg survey expected no change.