Forint Pares Loss After Central Bank Cuts Key Interest Rate

  • Hungary central bank in EU’s first interest-rate cut of 2023
  • Orban says Ukraine can’t win war on battlefield, opposes aid

Viktor Orban at the Qatar Economic Forum in Doha, Qatar, on May 23.

Photographer: Christopher Pike/Bloomberg
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Hungary’s forint pared losses after the nation’s central bank cut interest rates, calming a slump caused by a split with the European Union over Ukraine.

The forint trimmed earlier losses of as much as 0.9% against the euro — the biggest among emerging markets on Tuesday — after the central bank lowered its overnight interest rate by a full percentage point to 17%. While that was expected by economists, it signals the start of an end to an emergency policy regime.