Hungarian Forint Falls After Central Bank’s Policy Meeting

The Hungarian forint fell today after the monetary policy meeting of the Magyar Nemzeti Bank (Hungary’s central bank). While the bank decided to keep its central bank base rate unchanged, it reduced some other interest rates.

The MNB kept its key interest rate stable at 0.9%. At the same time, the central bank cut the overnight collateralised lending rate and the one-week collateralised lending rate, which have been higher previously, to the same level. What is more, the bank left door open for additional stimulus, saying:

If subsequently warranted by the achievement of the inflation target, the Council will stand ready to ease monetary conditions further using unconventional, targeted instruments.

USD/HUF rose by 0.24% to 293.82 as of 12:07 GMT today.

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