Euro convergence supports forint as MNB holds – BBH

Brown Brothers Harriman’s (BBH) Elias Haddad expects the National Bank of Hungary (MNB) to keep its policy rate at 6.25% for a third straight meeting. Haddad highlights the euro-convergence trade as a structural tailwind for the Hungarian Forint (HUF), noting Hungary’s new government aims to meet Euro adoption conditions by 2030, supporting a constructive medium-term HUF outlook.

Stable policy with structural HUF support

“MNB is widely expected to keep rates steady at 6.25% for a third consecutive meeting.”

“The euro-convergence trade will continue to be an important structural tailwind for HUF.”

“Hungary’s new government plans to meet euro adoption conditions by 2030.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)