Floating Forint Sets The Stage For Rate Hikes

April 2008
Emerging Europe Monitor: Central Europe & Baltic States;Apr2008, Vol. 15 Issue 4, p1
Country Report
The article focuses on the joint decision by the Hungarian government and National Bank of Hungary (NBH) to abandon the forint's 30 percent trading range on February 25, 2008. This is said to be the most significant development in the country's exchange rate policy since the introduction of the trading band in 2001. From a macroeconomic perspective, the adoption of a fully floating currency will end the contradiction in Hungarian monetary policy of both targeting inflation and the exchange rate.


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