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MNB may raise interest rate

Recent developments suggest that Hungarian central bank MNB is to raise interest in succession, online business portal Portfolio reported. The low forint risk premium of the state bond yields, the national risk charge and the inflation expectations also seem to support this idea.

The markets expect the rates to increase, too, said the portal referring to the recent short-term interest rate agreements. But while MNB raising interest would support foreign currency debtors on the one hand, it would cut down on the forint-based loaning on the other. (Portfolio)