Economists at Commerzbank see a modest recovery of the Forint during 2023 after inflation moderates to some extent, but once again a weaker HUF in 2024 when the Euro resumes depreciating.

HUF underperformance is likely to extend through 2024

“We forecast a modest recovery of the Forint during 2023 because inflation is likely to moderate to some extent through 2023, which will narrow down the negative real interest rate and make the central bank’s monetary stance appear more justified. In this window, we see EUR/HUF at below 400. 

“We once again forecast a weaker Forint in 2024 when inflation proves stubborn globally and the Euro resumes depreciating.”