EMERGING MARKETS-Hungarian forint slips ahead of rate decision; other FX muted
Oggi 09:38 - RSF
Hungarian base rate expected to stay unchanged at 13%
By Bansari Mayur Kamdar
Jan 24 (Reuters) - The Hungarian forint eased on Tuesday ahead of a National Bank of Hungary announcement which is expected to leave its base rate unchanged, while other emerging market currencies were muted against a soft dollar.
MSCI's index for emerging market currencies
slipped 0.1% against the euro.
Hungary's central bank is expected to leave its base rate unchanged at 13%, the highest in the European Union, according to a Reuters poll, due to persistent inflation pressures that are only expected to ease substantially in the second half of 2023.
"It's too early for them to start to soften their tight policy that was put in place last October really to support the forint," said Chris Turner, ING's global head of markets.
"There are people starting to price in the easing cycle, but we think that's a bit premature."
The forint slid 0.7% in the previous session after Fitch revised its outlook on Hungary's debt rating to negative from stable. [CEE/]
Other central and eastern European currencies edged down against the euro in early trading.
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(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Alexander Smith)
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