Fed’s interest rate cuts benefits MNB

Sights

wikimedia commons

The Fed’s interest rate cuts may also be good for the real economy in Hungary, writes mfor.hu.

Image: Wikimedia Commons

This week, the Federal Reserve cut its base rate target range by 50 basis points, dropping to 1-1.25%.

The move was explained by the spread of the coronavirus and its damaging market effects by Fed Chairman Jerome Powell, who justified the extraordinary decision by maintaining strong U.S. economic growth.

Following the decision, an initially optimistic mood prevailed in the markets and the forint also benefited.

The Fed’s move has not only affected the forint, but may have eased the pressure on the National Bank of Hungary (MNB), mfor.hu adds.

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.

Support the BBJ

Travel