EUR/HUF to drift modestly down over coming months – Commerzbank

Leaving aside the Turkish Lira, the Forint was the notable underperformer among currencies in the central and eastern European region for the past three years. Economists at Commerzbank analyze EUR/HUF outlook.

EUR/HUF on a steady rising path later in 2024 and 2025

We forecast EUR/HUF to drift modestly down over the coming months because Hungarian inflation will probably moderate faster than MNB will cut rates. 

But later in 2024 and 2025, wages and core inflation could prove stubborn, which will depress Hungary’s real interest rate, once more, and put EUR/HUF on a steady rising path.