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Forint Gains as Hungarian Central Bank Keeps Rates Stable

October 29, 2014 at 5:57 by Vladimir Vyun

Many Hungarian 20,000-forint billsThe Hungarian forint strengthened yesterday after the nation’s central bank left interest rates unchanged, a move expected by market analysts, and pledged to keep monetary policy stable for as long as it can.

The Magyar Nemzeti Bank (the Central Bank of Hungary) decided at yesterday’s meeting to keep its key interest rate at 2.1 percent. The bank has performed a long sequence of rate reductions since 2012 and now is trying to refrain from slashing borrowing costs further. The MNB said in the statement:

If the assumptions underlying the Bank’s projections hold, achieving the medium-term inflation target points in the direction of maintaining current loose monetary conditions for an extended period.

USD/HUF edged lower from 242.43 to 242.25 as of 5:57 GMT today.

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