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
The European Commission has today decided to close the formal investigation procedure into the agreement between Bratislava Airport in Slovakia and Ryanair after concluding that the airport operator acted as a market economy investor and therefore no advantage has been granted to Ryanair.
more »
The coffee industry of Jamaica represents one the largest earners of foreign exchange, approximately US$30 million in 2008.
more »
On January 13, 2010, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Mauritius.
more »
The World Bank's International Development Association and the International Monetary Fund have agreed to support US$1.6 billion in debt relief for the Islamic Republic of Afghanistan.
more »
The Common Agricultural Policy plays a critical role in helping farmers to deliver environmental goods and services, provided that policies are targeted in the right way.
more »
Regional Policy Commissioner Paweł Samecki will meet Croatia's Prime Minister Jadranka Kosor and members of her government in Zagreb on 25-26 January to discuss the country's preparations for accession in the context of the EU cohesion policy.
more »
The World Bank Board of Directors today approved US$20 million for the Dominican Republic in support of the Municipal Development Project, which aims to improve the technical and financial capacity of local governments.
more »
The European Investment Bank (EIB) is lending EUR 400 million to Ford Romania SA for the expansion and refurbishment of the company’s existing car assembly plant located in Craiova in the South-West of Romania.
more »
The Agriculture Council of the European Union has examined ways to improve the functioning of the food supply chain with the ultimate aim of controlling the fluctuation in prices and ensuring a more equitative distribution of the added value throughout the chain.
more »
The European Commission has today approved an application from Lithuania for assistance under the Globalisation Adjustment Fund (EGF).
more »