CEE MARKETS-Forint stays on the back foot despite rate hikes

July 31, 2022

PRAGUE, July 28 (Reuters) – The forint found little relief on Thursday after the Hungarian central bank sharply raised its one-week deposit rate, as expected after a massive base rate hike this week, while other currencies flat-lined amid ongoing market jitters. Central European currencies have been under pressure in the latest market souring, with energy prices and war in Ukraine weighing on outlooks. Weakening currencies are complicating central bankers’ work to tame surging inflation, World News especially in Hungary, where the central bank raised its base rate by 100 basis points to 10.75% on Tuesday, taking borrowing costs into double-digit territory for the first time since late 2008.