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Forint in Danger from Interest Rate Cut

November 27, 2012 at 13:32 by Vladimir Vyun

Hungarian coins and notesThe Hungarian forint strengthened today, but may yet retreat as the nation’s central bank lowered its main interest rate amid fears of recession in the European Union.

The Magyar Nemzeti Bank (the central bank of Hungary) announced today:

The Monetary Council of the Magyar Nemzeti Bank reduced the central bank base rate by 25 basis points to 6.00%, in effect from 28 November 2012.

The decision was expected by market analysts. The bank lowered interest rates as it is more concerned by the threat of recession than by accelerating inflation.

USD/HUF fell from 217.2400 to 216.1850 as of 13:32 GMT today.

If you have any questions, comments, or opinions regarding the Hungarian Forint, feel free to post them using the commentary form below.

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