Hungary Cut Key Interest Rate by 75 bps to 10.75% as Inflation Eases

Magyar Nemzeti Bank (MNB), the central bank of Hungary cut its key base rate by 75 bps to 10.75% during its December 2023 meeting, in line with market consensus. The rates on collateralized loan rates and overnight deposits were also reduced by the same margin, reaching 11.75% and 9.75%, respectively. Hungarian inflation continues to ease. The consumer price index fell significantly by 2.0%, while core inflation declined by 1.8% from the previous month., as inflation continues to ease. The central … Continue reading “Hungary Cut Key Interest Rate by 75 bps to 10.75% as Inflation Eases”

Emerging Markets Facing Highest Currency Crisis Risk Since 1999

This year we have seen a run-on EM market which is unleashing a dangerous dynamic. We have seen EM systems facing global de-risking/deleveraging without a clear Fed and central banking community “put.” Nomura has warned 22 of the 32 countries covered by its in-house “Damocles” warning system have seen their risk rise since its last update since May to the most vulnerable since July 1999 and near the peak at “the height of the Asian crisis”. Seven countries, Egypt, Romania, Sri … Continue reading “Emerging Markets Facing Highest Currency Crisis Risk Since 1999”