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GS sees forint dropping to 320 against euro

The central bank will continue its rate cutting cycle with reductions of another 75 basis points to the base rate that will likely see the national currency weakening to 315-320 against the euro, Goldman Sachs said in a research note. The lack of predictability in Hungary’s economic policies compounded by the central bank’s rate-setting panel now fully controlled by rate-setters supportive to the government’s approach present further risks to the forint and the resulting weakening may well call for market intervention, it said.