Central Banks
Hungary Central Bank Buoys Forint With Hawkish Tilt on Rates
- Central bank urges caution after key rate cut to 13% from 14%
- Hungary’s currency snaps six day of losses against the euro
The forint strengthened below 390 per euro on Tuesday in Budapest.
Photographer: Akos Stiller/Bloomberg
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Hungary’s central bank reaffirmed a more hawkish tilt in monetary policy after completing the unwinding of an emergency interest rate hike that staved off a currency crisis last year. The forint rose against the euro.
Hungary needs “tight” monetary policy and must be “cautious” with further rate cuts as inflation remains “unacceptably high,” Deputy Governor Barnabas Virag said at an online briefing on Tuesday. He spoke after a fifth full-percentage point monthly cut to 13% on the one-day deposit facility, aligning it with the benchmark, which will revert to be the key rate.