Many risks are visible in the economy
According to the current prospects, the annual average annual inflation this year may be 4.2 percent, but many risks must be taken into account. For example, with the forint, which broke out of its previous band in a weakening direction in the recent period, as a result the euro was above HUF 395 – said Dávid Németh, senior analyst at K&H, at the event organized by the financial institution. Among other things, the specialist also revealed when the central bank’s room for maneuver may be narrowed.
Dávid Németh, senior analyst at K&H, also spoke about the weakening of the forint seen in recent days, as well as the development of inflation and interest rates, at the press event held at the Museum of Fine Arts in Budapest on Thursday. The current labor market situation also played a prominent role in the specialist’s presentation.
What can the central bank do?
“Several factors contributed to the decline of the forint seen in recent days and weeks. Due to the reduction of interest rates, the premium offered by the Hungarian currency decreased, and the willingness to take international risks also decreased. As a result of all this, the forint broke out of its previous band in a weaker direction. Thus, the exchange rate of the euro crossed the HUF 390 level in the first round, and then went above HUF 395. We can say that in the short term, the euro may be quoted between HUF 386 and HUF 400. However, it is important that several risks are visible that point in the direction of further weakening of the forint”
said the specialist. In the current forint market situation, the fundamentals of the Hungarian economy, such as the state of the budget, the development of the national debt, and the growth potential, are becoming increasingly important due to the reduction of the interest rate advantage.
Related news
Bad times after good ones?
K&H’s large company growth index – which analyses the economic…
Read more >The number of purchases made using smart devices has increased one and a half times in a year
Digital payments continue to make inroads, according to K&H’s own…
Read more >K&H: vacation is knocking, let’s go to the big world!
Summer trips abroad are the first real independent adventure for…
Read more >Related news
Viktor Orbán: we will introduce margin reduction for new products as well, if necessary
The margin regulation must be maintained because people must be…
Read more >Healthy meat products rich in fiber and protein have been developed in Debrecen
A new product line consisting of health-promoting, fiber- and protein-rich…
Read more >German retail sales fell month-on-month in April
In Germany, retail sales fell by 1.1 percent in real…
Read more >