After Governor Virag underlined that monetary policy in Hungary would remain restrictive even if inflation eased back into double digits, the Forint was able to regain some ground.

Time will tell whether Virag keeps his word. If the Hungarian Central Bank (MNB) really acts cautiously over the coming months, as it stated in the statement following its meeting at the start of the week and if it cuts key rates much more slowly than inflation eases, that would constitute a positive signal for the Forint. Let’s hope that we will have such a positive surprise.