The Monetary Council of the Hungarian National Bank (MNB) increased its base rate from 9.5 percent to 12.5 percent on 28 November
Published:
2 December 2003 y., Tuesday
The Monetary Council of the Hungarian National Bank (MNB) increased its base rate from 9.5 percent to 12.5 percent on 28 November, the same day that the national currency had weakened to 270 forints to the euro,
Hungarian dailies and the central bank's website (http://www.mnb.hu) reported. After the MNB's move, which was supported by Finance Minister Csaba Laszlo, the forint strengthened to 263 to the euro. Governor Zsigmond Jarai told Hungarian radio on 29 November that the central bank took the decision to assure foreign investors that its 2005 inflation target of 4 percent will be met.
The rise in Hungary's current-account deficit has caused uncertainty among foreign investors, Jarai explained. He did not rule out the bank reducing its base rate again within a few months. Hungarian Banking Association Chairman Rezso Nyers told the MTI news agency that banks were shocked by the "negative surprise," while the Financial Research Institute's Judit Nemenyi warned that overvaluing the forint would further increase the deficit, not reduce it.
Šaltinis:
rferl.org
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
New legislation for pan-European supervision of credit rating agencies and a public debate on how financial institutions are managed.
more »
On 2 June in Vilnius, Lithuania‘s Vice-Minister of Foreign Affairs Asta Skaisgirytė Liauškienė and Deputy Director General of the World Trade Organization Rufus H. Yerxa discussed the main issues on the international trade policy agenda, Russia‘s WTO accession and the changing role of China in the world economy.
more »
2157 former construction workers in Spain and 598 ex-employees at the Irish crystal glass company Waterford Crystal with suppliers could get €11 million in EU globalisation adjustment fund aid for training, self-employment and professional orientation under plans approved by the Budgets Committee on Wednesday.
more »
Companies from the UK, Belgium, Germany and Spain have won the 2010 European Business Awards for the Environment.
more »
The planned overhaul of EU fisheries policy should devolve more powers to regions, protect small coastal fleets and boost aquaculture, said MEPs and members of national parliaments on Tuesday.
more »
The first in a series of loan agreements for energy efficiency investments in multi-apartment buildings was signed today between the European Investment Bank (EIB), as manager of the JESSICA holding fund in Lithuania, and Šiaulių bankas.
more »
Despite the current economic crisis and tensions in the euro, Estonia is set to adopt the single currency in January.
more »
Commission proposes a bank tax to cover the costs of winding down banks that go bust.
more »
The European Investment Bank will provide a total of EUR 400 million to Hellenic Petroleum SA in order to increase the production of cleaner fuels via the upgrading of the Elefsina refinery.
more »
European ministers meet on Tuesday and Wednesday in Brussels at the final Competitiveness Council to be held during the six months of the Spanish Presidency, which has an agenda laden with important issues such as the electric vehicle, the European patent system and national R+D investment goals.
more »