Magazine: Uncertainty in the financial markets
InthesecondhalfofAugust the world’s leading stock exchanges suffered a 10-20 percent drop. The reason behind this was the Chinese economy’s fear of slowing down, which resultedinthe government imposing measures to avoid a panic reaction from actors in the market. Raw material prices kept falling, but on the other hand cheap motor fuels have had positive influence on the economy and the inflation hasn’t speeded up. In mid-September theFEDdidn’tincrease its base rate and this decision kept markets and investors in a state of uncertainty. At the same time the forint is doing rather well. May be the Central Bank of Hungary (MNB) is ready to cut the base rate once again?
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