Hungary Floats Bank Rate Plan, Deepening Friction With Central Bank
- Economy ministry officials float plan to switch reference rate
- Plan would trigger outflows from Hungary, UniCredit warns
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The forint and shares in Hungary’s largest lender fell after the Economy Ministry floated a plan to replace the reference rate used for bank loans.
Hungary’s currency dropped as much as 0.5% to 385.3 per euro, the weakest in five weeks. OTP Bank Nyrt.’s shares fell 3.2%, the most since September, after the proposal, which risked further boosting tensions between the government and the central bank.