Mar 23
Hungary: Weak HUF keeps interest rates on hold
The Hungarian central bank (MNB) today decided to keep the key policy rate unchanged at 9.50%. The decision was completely in line with our and consensus expectations, and clearly reflects the recent significant depreciation of the Hungarian currency (HUF). Fundamentally, however, we believe the MNB would like to cut interest rates further to stimulate economic activity, but the recent dramatic weakening of the HUF and large external imbalances limit any further aggressive monetary easing
