The Hungarian forint spiked up against the euro in New York deals on Tuesday, after Hungary’s central bank cut its key interest rate to a new low, amid falling prices and improving growth.
The Monetary Council of the Magyar Nemzeti Bank reduced the base rate by 15 basis points to 1.95 percent. Economists had expected a slightly larger cut to 1.90 percent.
The new rates are effective March 25. The central bank overnight deposit rate is now at 0.95 percent and the lending rate at 2.95 percent.
The Hungarian forint hit 300.31 against the euro, its highest since March 2. At yesterday’s close, the pair was valued at 303.19. The next possible resistance for the Hungarian forint is seen around the 297.00 zone.
The material has been provided by InstaForex Company – www.instaforex.com