Central Banks
Emergency Action in Hungary Drives Forint Up Most in 11 Years
- Central bank offers 18% on 1-day deposit versus 13% base rate
- Forint jumps as much as 3% against the euro, most since 2011
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Hungary took emergency action to halt the free-fall of the currency, shortly after Prime Minister Viktor Orban asked the central bank and his finance minister to rein in runaway inflation.
The forint, battered by headwinds including a looming economic slowdown, frozen European Union aid funds and the highest consumer price growth since 1996, gained as much as 3% after policy makers introduced a new 1-day deposit facility with an interest rate of 18%.