FinMin Says Hungary to Weigh Conditions for Central Bank Law Change

Hungary’s government will weigh whether the economic conditions are right to proceed with a controversial central bank legislation, Finance Minister Mihaly Varga said in an interview with Bloomberg.

• As a reminder, the forint faced a headwind last week following the announcement of planned legislation on the central bank which seeks to broaden the purview of the bank’s supervisory board, which includes government appointees.
• Governor Matolcsy said then that Prime Minister Orban’s government is planning a “significant attack” against central bank independence with the proposed modification.
• The government responded saying it respects central bank independence and aims to boost transparency and prudent financial management.
• EURHUF has seen a moderate uptick on the most recent headlines, though we remain well below yesterday’s highs.