(Bloomberg) -- The Hungarian forint extended its gains
against the euro after the central bank unexpectedly kept interest
rates unchanged at the highest in the European Union today.
The rate-setting Monetary Council kept the two-week deposit
rate at 8 percent for a seventh month. Economists surveyed by
Bloomberg News had forecast a quarter-point cut. The relatively
high interest rates in Hungary make the forint a favorite for
carry trade investors which involves borrowing in a low interest
rate currency like the yen or Swiss Franc and investing in higher-
yield assets elsewhere.
Read more at Bloomberg Currencies News
against the euro after the central bank unexpectedly kept interest
rates unchanged at the highest in the European Union today.
The rate-setting Monetary Council kept the two-week deposit
rate at 8 percent for a seventh month. Economists surveyed by
Bloomberg News had forecast a quarter-point cut. The relatively
high interest rates in Hungary make the forint a favorite for
carry trade investors which involves borrowing in a low interest
rate currency like the yen or Swiss Franc and investing in higher-
yield assets elsewhere.
Read more at Bloomberg Currencies News
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