Analyst: Fed’s rate hike has little impact on Hungary

Analysis

wikimedia commons

The U.S. Federal Reserve’s decision to raise interest rates yesterday will have little impact on Hungary, as this is one of the least vulnerable economies, Mariann Trippon, chief analyst at CIB Bank in Hungary, told the Budapest Business Journal today.

The Federal Reserve Bank in Washington, D.C. (Photo: Wikimedia/Dan Smith)

The Hungarian economy has been characterized by decreasing external debt, disciplined fiscal policy, massive external surplus and slowing but stable growth, Trippon explained.

Direct real economic effects are expected to be marginal, though Hungary cannot isolate itself from global trends, Trippon said. Long-term state bond yields are expected to grow gradually, despite the Self-financing Program in 2016 and the European Central Bank’s Quantitative Easing, and the risk that the forint will weaken is now slightly higher, the analyst added.

Considering the global market, Trippon said the Fed’s decision yesterday was not a surprise, market reactions were moderate, and the base rate is expected to gradually keep growing slowly, which will inevitably have a mild dampening impact on global capital flow and developing markets.

Number of Thefts in Capital Edges Higher in 2023 Figures

Number of Thefts in Capital Edges Higher in 2023

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Popular Pain Meds Could Worsen Some Disease Symptoms Science

Popular Pain Meds Could Worsen Some Disease Symptoms

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

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.