ADVERTISEMENT

Reuters poll sees MNB tightening strengthening forint

Food

The forint is expected to firm slightly in the next 12 months as Hungary’s central bank could start to tighten its monetary policy gradually, analysts said in a Reuters poll conducted February 1-5.

The survey projected a 0.5% gain for the forint in the coming year relative to midday trade. An updated median forecast of 316 versus the euro is stronger than the 320 projected for the 12-month horizon in a survey a month ago.

Last month the forint reached its strongest level since May, at 315.03. It strengthened after Márton Nagy, deputy governor of the National Bank of Hungary (MNB), said three weeks ago that the bank could start to tighten policy if tax-adjusted core inflation reaches or exceeds 3%.

The bank has kept its main rate at a record low of 0.9% since 2016 and is not expected to increase it this year. But many market participants said it could let short-term interbank interest rates rise soon, supporting the forint, given that the inflation gauge reached 2.9% in December, the Reuters poll reported.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.