Rattling bones

The summer of 2014 brought major changes in the world’s financial markets and from scenarios envisaged earlier the negative ones seem to have started to be realised. The European Union and the USA imposed tough sanctions on Russia.

At the same time Fitch Ratings downgraded Russia. Russia’s answer: banning the import of fruits and vegetables, and they are also considering stopping automotive industry supply. The US economy does well but the FED’s budget for bond purchases was cut again and plan is it will end completely by October. In Europe the German DAX index fell nearly 10 percent in just a month. As for Hungary, bad news keeps coming in about the banking system. MNB, the Central Bank of Hungary lowered the base rate to a new record level: 2.1 percent. This entailed a plunge for the forint as one euro cost more than HUF 315 in the negative mood of the world market. What is more, further skeletons might fall out of the Hungarian banking system’s cupboard.