ADVERTISEMENT

Citi sees weak forint until Matolcsy uncertainties subside

Conferences

The forint is likely to trade well above the 290 mark against the euro until plans of György Matolcsy, the new central bank governor, become clearer for market participants, London-based emerging markets analysts said on Monday. Commerzbank said that Matolcsy's actions at the next central bank meetings will be decisive for the medium term outlook of the forint. A rate cut cycle to 4.50-5.00% is broad market consensus. However, what is creating more pressure is the expectation of measures of quantitative easing "a la Fed", as well as unconventional measures to weaken the forint, Commerzbank's analysts added. JP Morgan's London-based analysts said Matolcsy's remarks at his parliamentary hearing on policy tools available to support growth suggests to them that the MNB will now follow more of a dual mandate than under the previous governor, András Simor, who placed a greater emphasis on the MNB's primary objective of price stability.

ADVERTISEMENT

OECD projects Hungary GDP growth will slow to 5% in 2022 Analysis

OECD projects Hungary GDP growth will slow to 5% in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.