Hungary raises rates to bolster currency

Hungary’s central bank raised its base interest rate 300 basis points to 11.5% on the 22 October 2008 after the sell-off in the forint that has been in train since the 20 October 2008 showed no signs of abating. Hungary’s forint jumped after a surprise interest rate rise to bolster the country’s battered currency, but quickly gave up gains as the move failed to quell investors’ concerns

ESO: Background information: Hungarian currency and shares plunge http://www.europeansources.info/record/hungarian-currency-and-shares-plunge/

MNB: Press Release, 22.10.08: Press release on the Monetary Council’s special meeting of 22 October 2008 http://english.mnb.hu/Engine.aspx?page=mnben_monet_kozlem&ContentID=11688

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