MNB: No problem, no comment, we have said everything we wanted

HUNGARY - In Brief 28 Jun 2018 by Istvan Racz
Today's trading did not bring about any relief for the forint, which slid a bit further down, to EURHUF 328.5-329. Responding to a question, the government's spokesman, state secretary Zoltán Kovács said that there may be investor speculation at play against the forint.The MNB apparently did not like Mr. Kovács' reaction, or possibly they did not like its possible interpretation by the market. The Bank issued a very short statement, only saying that their primary objective is to maintain domestic price stability, on which they said everything they wanted last week. They distanced themselves from Mr. Kovács' view, adding the Bank will continue not to comment on the daily movements by currency exchange rates. In other words: no problem, no comment, the MNB are staying consequent in that regard. The forint did not react to this statement, and logically so - its recent weakening took place exactly on the market assumption that the MNB would not say or do anything until the HUF weakens by significantly more vis-a-vis the euro.

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