The forint strengthened to around 410.30 to the euro shortly after the central bank raised the base rate by 200 basis points on Tuesday.
The forint firmed 10 minutes after the announcement by 0.5-0.6% to 410.30 forints from 412.25. The dollar went from 411.82 forints to 409.40 after the announcement, while the Hungarian currency strengthened to 415.40 against the Swiss franc from 417.87. In the past week, the forint dropped to 417.03 against the euro.
At the end of June, the central bank raised its base rate by 185 basis points to 7.75%, while last Thursday, the bank raised the one-week deposit rate by 200 basis points in response a new record low the previous day. At Tuesday’s interest rate meeting, the central bank raised the central bank base rate by 200 basis points to 9.75%, which now matches the O/N deposit rate.
hungarymatters.hu
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