Report: Forint to depreciate as monetary policy is eased


Chief Economist Jörg Krämer of Germany-based Commerzbank predicts a depreciation of the Hungarian forint as the country’s monetary policy is eased, according to the latest “Economic and Market Monitor” report issued by the lender today.

Commerzbank predicted slower GDP growth this year, at 2.2%, down from last year’s 2.9%, due to a peak in auto production and a drop in the inflow of EU funds.

The lender also anticipated Hungary’s credit rating would rise to investment grade this year, thanks to improvements in the country’s budget deficit and domestic and external debt. Moody’s and Fitch now both have a positive outlook for Hungary.

It was noted in the report that the forint recently benefitted from dovish developments at the Fed.

The European Central Bank is also expected to add to monetary expansion, prompting the National Bank of Hungary to follow suit and resume its rate cutting cycle, as well as lower its three-month deposit rate from 1.35% to 1% before the end of this year, according to the report. The central bank is also likely to expand its quantitative easing program.

Commerzbank predicts the forint will fall in value to 325 against the euro by the end of 2016.


Hungarians Want to Live to 96 Analysis

Hungarians Want to Live to 96

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Wizz Air Malta Names Managing Director Appointments

Wizz Air Malta Names Managing Director

Muni Council Organizing Meeting to Improve Air Quality City

Muni Council Organizing Meeting to Improve Air Quality


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.