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High interest rates remain attractive, Hungarian forint consolidates strongly at a 26-month high

High interest rates remain attractive, Hungarian forint consolidates strongly at a 26-month high

汇通财经汇通财经2026/02/10 10:02
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⑴ On Tuesday, the Hungarian forint edged down slightly, retreating from the 26-month high reached in the previous trading session, with the recent rally in Central and Eastern European currencies also pausing for now. ⑵ The forint is at its strongest level since November 2023, with its strength attributed to a weaker currency boosting investor appetite for emerging market assets, while Hungary's high interest rates provide additional appeal. ⑶ Some analysis institutions have pointed out that even if the Hungarian central bank cuts rates in the first quarter as the market expects, the forint may remain strong; its benchmark interest rate is currently 6.5%, leading among EU countries. ⑷ The institution also warned that the next risk point would be if the central bank meeting in two weeks sends an overly dovish signal, but comments from the current governor suggest that future rate cuts will be approached cautiously, which should help ensure the stability of the forint's exchange rate. ⑸ An institutional survey conducted this month predicts that the forint may weaken to 385 forint per 1 euro over the next six months; in addition, the upcoming parliamentary elections also bring some volatility risks. ⑹ As for other currencies, the Czech koruna weakened for a second consecutive day; the Polish zloty also slipped by 0.1%, with analysts expecting it to mainly look for cues from global market sentiment. ⑺ Some local banks expect the pace of depreciation to slow in the short term, which should help support the stability of the zloty and its exchange rate. ⑻ The Romanian leu remained steady on Tuesday, while regional stock markets were mixed, with the Budapest stock market being the main gainer, rising by 0.5%.
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