Hungary is suffering from the actions of Prime Minister Viktor Orban, who is “at war” with the local central bank, and also threatens to again block aid to Ukraine. These actions caused the Hungarian forint to fall to a 4-month low. Bloomberg writes about this.
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As the publication notes, Orban continues the confrontation with the Hungarian central bank over monetary policy, and its threats to block aid to Ukraine have led to the fact that the EU is seriously considering depriving Hungary of funding, writes FT.
OTP Bank analysts said that these disputes are having an impact negative impact on the forint exchange rate.
The Hungarian currency fell 0.7%, briefly crossing the 390 level against the euro for the first time since early October.
Other Hungarian assets also suffered: yield 10 -year government bonds rose nine basis points, while the benchmark BUX share index fell 1.5%.
The central bank is considering cutting interest rates at its meeting on Tuesday.