Forint Bulls Undeterred as Hungary’s Rate-Cut Cycle Approaches

The rally that’s taken the Hungarian forint to two-year highs is unlikely to be derailed by a potential interest rate cut on Tuesday, the country’s first in over a year.

Bets on Hungary’s April election and a central bank vigilant on inflation are reasons to stay bullish on the forint, according to strategists. While recent data may have paved the way for a 25 basis-point rate reduction, the move would still leave rates at 6.25% — the highest in the European Union after Romania.