National Bank decision: forint may start to plummet next week

Next week, the Hungarian national bank’s monetary council will hold a sitting to decide the one-day quick deposit rate. Furthermore, the Hungarian Central Statistical Office will share employment data in June and how average income changed in May. All these have crucial importance concerning the exchange rate of the forint.

According to index.hu, Hungary’s finance ministry will share detailed data on the state budget next Monday. The deficit is significant, almost HUF 3,000 billion (EUR 7.6 billion). In June, the state budget deficit rose by HUF 132.7 billion (EUR 350 million). That was the lowest number in the last eight years.

Index.hu wrote that even though salaries rise in Hungary significantly (between 11.7 and 18.9 percent), the real wage decreased by 6.9 percent since prices grew by 24 percent compared to last June.

Forint to be affected by national bank’s decision

The national bank’s monetary council will modify the one-day quick deposit rate. In June, they did not change it, so it remained at 13 percent, which was introduced last September. But they reduced the upper end of the interest rate corridor from 19.5 percent to 18.5 percent.  Read more about the June decision in THIS article.