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Central Bank

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Hungarian Inflation the Highest in the EU

Nov 4, 2022

It is increasingly apparent that Hungary’s inflation is the steepest in the European Union. Although the official inflation indicators of the Baltic countries are higher than those of Hungary, EU data from the summer show that the core inflation indicator, which contains much less distorting effects, is the worst in Hungary. The inflationary pressure intensified […]

Forint in free fall may force Hungary to hike rates, join euro waiting room

Oct 14, 2022

The continued plunge in Hungary’s national currency is forcing the country’s decision makers to revisit earlier policy measures as the weakening forint wreaks havoc in the economy. The central bank may be forced to resume its tightening cycle while the government has indicated it could bring forward the nation’s erm-2 accession, the waiting room of […]

EU’s highest interest rate in Hungary set to rise further

Sep 2, 2022

The National Bank of Hungary raised borrowing costs to an 18-year high this week, taking the European Union’s highest interest rate to 11.75%. Policy makers vowed to tighten monetary conditions further, in contrast with other central banks in the region. The Monetary Policy Council of the National Bank of Hungary delivered yet another massive interest […]

What awaits Hungary’s rollercoaster currency?

Aug 26, 2022

Hungary’s currency, the forint, has brokern numerous negative records against the euro and the dollar in recent weeks. The trend in currency markets is similar across Central and Eastern Europe (CEE) due to the war in Ukraine and the related sanctions, the forint has staged the steepest fall in the region. What could put a […]

Hungarian Inflation Soars, Could Peak at Higher Level than Seen Earlier

Aug 12, 2022

Hungarian consumer prices rose the most since 1998 on the back of soaring food costs. Analysts believe that inflation may exceed 20% as energy subsidies fade the war in Ukraine continues unabated. Hungarian inflation accelerated at the fastest pace in almost a quarter century in July, taking a heavy toll on household’s purchasing power and […]

Hungary set to slip into recession

Jul 29, 2022

Skyrocketing consumer prices, the looming energy crisis and the aggressive tightening of monetary conditions point in the direction of Hungary entering recession, according to economists. The country’s GDP growth will remain feeble next year as well. Hungary’s economy faces multiple risks of which some are triggered by international developments while others relate to domestic issues. […]

Hungarian forint: a glance at the reasons for the selloff

Jul 8, 2022

The Hungarian forint has been one of the weakest performing currencies worldwide amid an international selloff. Despite government reassurances that the fundamentals of the Hungarian economy are strong and sound, the forint remain under massive pressure. Diplomacy&Trade takes a look at the specific reasons behind the forint’s underperformance and how the currency’s weakness threatens the […]

Hungary Delivers Steepest Rate Hike Since 2008 Global Crisis

Jul 1, 2022

The National Bank of Hungary delivered the biggest rate cut since 2008, surprising the markets with the size of the move. The monetary decision came after the forint weakened to levels never seen before. The Hungarian central bank raised the base interest rate by 185 basis points to 7.75% this week and policy makers aligned […]

Hungary Delivers Unexpected Rate Hike as Forint Weakens to Record Level

Jun 17, 2022

The National Bank of Hungary surprised markets when it unexpectedly raised the key interest rate as monetary policy setters seek to put a floor under the sliding forint. In the face of double-digit inflation and massive wage increases, the central bank has to keep raising borrowing costs to keep Hungarian financial assets competitive. The National […]

Hungarian mortgage borrowers in hot water

Apr 1, 2022

The Hungarian central bank’s tightening cycle, the most aggressive in the European Union, has led to an increase in loan repayment obligations last seen in the 2008 financial crisis. Once the government’s interest rate stop on retail loans runs out at the end of June, hundreds of thousands of Hungarian families will experience a jump […]

Hungarian Central Bank Delivers Aggressive Rate Hike to Combat Inflation

Mar 25, 2022

The National Bank of Hungary raised massively the EU’s highest key interest rate as it seeks to tamper runaway inflation and bolster the forint. Analysts expect policy makers to continue raising borrowing costs as the war in Ukraine continues to rattle markets. The Monetary Council of the Hungarian National Bank (NBH) raised the central bank […]

War in Ukraine Sends Forint Plummeting, Central Bank Vows to Protect Currency

Mar 4, 2022

Russia’s invasion of Ukraine sent markets in the region into a whirlwind and pushed the Hungarian forint to a record low against the euro this week. The National Bank of Hungary said it would take the necessary measures to contain the impact of the Ukrainian conflict on financial markets. International market sentiment sank this week […]

Hungary lending boom may be nearing end, further slowdown on the horizon

Dec 3, 2021

Activity on Hungary’s credit market showed a general slowdown in October, even though bank lending rates only started to rise sharply in November. Given the rather aggressive monetary tightening pursued by the National Bank of Hungary, the coming months could bring an even more accentuated slowdown in lending. Activity on the Hungarian retail credit market […]

Record weak forint puts Hungarian central bank in tight spot

Nov 26, 2021

Record weak forint puts Hungarian central bank in tight spotThe Hungarian forint weakened to a record level against the euro this week and Hungarian government bond yields jumped amid a souring of international market sentiment and a surge in COVID-19 cases. The central bank raised the interest rate on its one-week deposit facility in an […]

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