Hungary: New Interest Rate Cuts Ahead

Politics ♦ Published: March 16, 2013; 18:55 ♦ (Vindobona)

Since the beginning of March, Hungary´s National Bank MNB has a new governor. The government wants MNB to lower the base rate further.

Hungary: New Interest Rate Cuts Ahead / Picture: © Hungarian Central Bank

According to Adam Balog, Vice Governor of MNB, a weak forint is not welcome. However, MNB has no certain target for the Hungarian currency. As Hungary´s foreign indebtedness is rather high, the government wants to prevent a further slide in the forint. This week, the forint has reached the lowest level since January.

Due to the revaluation in 2012, Hungary´s public debt quota…