German bank: If there is an interest rate cut, it is unlikely that the Hungarian forint will continue to fall.

Tatha Ghose from Deutsche Bank said in a report that the Hungarian Central Bank may decide to cut interest rates by 25 basis points at 1300 Greenwich Mean Time, but this may not have a lasting negative impact on the forint. He stated that the market has increasingly reflected expectations of this move, and given recent lower-than-expected inflation data and expectations of further inflation slowdown, this step is "a logical one." He said that any depreciation of the forint is unlikely to be sustained, as cutting interest rates to combat decreasing inflation does not necessarily mean a narrowing of real interest rates adjusted for inflation. "On the contrary, this represents increasing confidence that inflation is under control, which should ultimately support the country's currency." The euro rose 0.6% to 376.31 forints.