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Commerzbank Sees Little Reason Why HUF FX Rate Will Calm Down

HUNGARY
  • Commerzbank write on the recent HUF volatility that it's difficult to see why the FX rate will calm down again.
  • They write that the government’s reassurances on EU funding amount to little – the EC is blocking it, not the Hungarian government, hence official confirmation of a resolution must come from that source before it can act as relief for the market.
  • Additionally, the NBH's criticism of the government's actions to cap mortgage rates and loan rates are valid, and the reaction will likely cause escalation between the government and central bank.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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