Hungary: Goodbye to fluctuation band
As we had expected, the Hungarian central bank (MNB) today decided to leave its key policy rate unchanged at 7.50%. This was also the consensus expectation, however, a fair share of analysts had in fact expected a rate hike today. More notably, the MNB also announced that it has abandoned its FX fluctuation band. We have long expected that this would happen sooner or later, so in that sense it is not a major surprise.
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