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
According to Spain's Minister of Industry, Tourism and Trade, Miguel Sebastián, currently chairing an Informal Energy Council today in Seville, the key to achieving a common EU energy market is to establish interconnections.
more »
Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), announced today that the Fund will provide US$100 million very rapidly in emergency financing to Haiti to assist it in dealing with the aftermath of the massive and devastating earthquake that has hit the country.
more »
Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), issued the following statement on Jamaica today.
more »
The Government of the Republic of Korea and the International Monetary Fund (IMF) announced today that they will jointly host a high-level international conference on Asia in Seoul, South Korea, during July 12-13, 2010.
more »
Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), will travel to Tokyo and Hong Kong SAR, January 18−20, 2010.
more »
After lots were drawn, ten winners of Danske Bankas scholarships and one winner of an iPod shuffle player were established.
more »
The Meeting is convened on the initiative and by the resolution of the Management Board of the Bank.
more »
Today, Thursday, on the second and last day of their informal meeting in La Granja (Segovia), the ministers responsible for European Affairs will study the challenge of how to boost reflation through sustainable growth that generates new employment.
more »
How well-equipped are European companies to meet the challenges of global competition and the recent recession? The 2009 European Company Survey provides some clues.
more »
The European Commission decided today not to raise any objections to Finland's plan to support infrastructure investments in Vaasa regional airport.
more »