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
The European Commission has authorised under EU state aid rules a €550 million capital injection and a €400 million guarantee in favour of the Austrian bank BAWAG. P.S.K. The Commission found the measures to be in line with EU state aid rules.
more »
EUROSTAT has reported that the sharpest annual decrease in hourly labour costs of -10.9% was observed in Lithuania in the 3rd quarter of 2009.
more »
Statistics Lithuania informs that, according to the Labour Force Survey data, the number of the unemployed in III quarter 2009 made 228.1 thousand.
more »
What has come to be termed as the "Great Recession" seems to have come to an end in the third quarter of 2009.
more »
The European Commission has authorised, under EU State aid rules, a measure adopted by Lithuania to limit the adverse impact of the current financial crisis on exporting firms.
more »
The schedule of Vilnius International Airport (VIA) is supplemented with 3 more new directions; the airline company airBaltic starts regular flights to Paris today, to Munich tomorrow, and to Berlin on Monday.
more »
The Governing Council of the European Central Bank (ECB) has decided to start the main construction works for its new premises in spring 2010.
more »
AB Bank SNORAS was granted the award from NASDAQ OMX Baltic Stock Exchange for the jubilee 15-year listing of the bank’s shares on NASDAQ OMX Vilnius Stock Exchange.
more »
Parex banka has established a subsidiary, SIA NIF, which will professionally manage assets that are not related to the Bank’s core business.
more »
Mariann Fischer Boel, European Commissioner for Agriculture and Rural Development, today put forward a plan to ensure that Greece will put in place the systems necessary to allow EU aid payments to be made to farmers.
more »