Central Banks
Hungary Central Bank’s New Leadership Sees No Rate-Cut Room
- Resurgence of inflation is seen to curtail room for easing
- Forint gains to five-month high against euro after report
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Hungary’s new central bank leadership sees no room to cut interest rates because of a resurgence of inflation, according to people familiar with the outlook, cooling speculation that monetary easing may resume at a brisk pace later this year.
While fast-moving market and geopolitical developments make forecasting a challenge, Governor Mihaly Varga is unlikely to advocate for reductions to one of the highest key rates in the European Union under current conditions, according to people familiar with his thinking who asked not to be named discussing internal deliberations.