The Hungarian central bank cut its benchmark interest rate by 0.50 percentage points to 11.0 percent in what was seen as an attempt to weaken the country's currency
Published:
17 August 2004 y., Tuesday
The central bank's decision, widely expected by analysts, came after the forint strengthened in recent weeks to less than 250 forint per euro.
On Monday, the forint was trading at 247.9 to the euro ahead of the announcement and weakened to 248.7 forint to the euro immediately after the rate cut.
The central bank has identified a range of between 250-260 forints per euro as the most appropriate for Hungary to join the eurozone, which the government has vowed to do in 2010.
A speculative attack in January 2003 saw the forint appreciating rapidly only to lose nearly 10 percent of its value by year-end. Analysts then blamed erratic monetary policies -- including flip-flops in interest rate policies and an intervention in the curreny's trading band -- coupled with a large public deficit for the loss of investor confidence.
The central bank said in a statement Monday domestic factors influencing its rate cut were positive trends in inflation and growth.
Šaltinis:
AFP
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Women in the EU earn on average 18% less than men - a gap that has scarcely narrowed over the last 15 years and in some countries has even grown.
more »
43 gas and electricity projects to split €2.3bn, the most the EU has ever spent on energy infrastructure in a single package.
more »
Georgia and the European Union have initialled a comprehensive air services agreement at a meeting in Tbilisi, Georgia, today which will open up and integrate the respective markets, strengthen cooperation and offer new opportunities for consumers and operators.
more »
In order to vitalize and strengthen cooperation of business stakeholders in the region, the Nordic and Baltic countries continue running joint mobility programme.
more »
The EBRD is boosting the availability of financing to the real economy sector in Serbia, with a €20 million credit line to Société Générale Serbia for on-lending to small and medium enterprises.
more »
The EBRD is supporting the development of the private sector in Armenia and increases further the availability of financing in the real economy sector with a $10 million loan to Ameriabank for on lending to local companies under its Medium Sized Co-financing Facility (MCFF).
more »
The EBRD is supporting the modernisation and improvement of transport infrastructure in Albania with a €50 million sovereign loan to finance the rehabilitation of regional and local roads in the country.
more »
Given the deep impact Latvia has suffered in the wake of the global crisis, and due to the emergency nature of this program, the first operation will focus mainly on the first and second objectives.
more »
Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), will visit Africa March 7-11, to discuss opportunities and challenges facing African economies in the wake of the global crisis.
more »
Without enough money, the EU 2020 strategy risks turning into "another vague scoreboard for the Member States", the EP Budgets Committee warned on Thursday when adopting its priorities for the 2011 budget.
more »