Dutch International: Potential interest rate cuts in Hungary next month are unlikely to weaken the forint.

In a report by the Netherlands International Group, Frantisek Taborsky stated that the Hungarian central bank may cut interest rates next month, but this will not pose a significant threat to the forint. The central bank kept its key rate at 6.25% on Monday, but the meeting supported market expectations of a rate cut in June and "greenlit more rate cuts expected by the end of the year." He said, however, that this should not disrupt the forint's upward trend, which is supported by the prospect of EU funds being released to Hungary. The euro rose 0.3% to 355.15 forints, and the Netherlands International Group expects the exchange rate to reach 350 by mid-year.