The CEE markets came under further selling pressure on weak regional PMIs and euro crisis escalation. The Hungarian markets are above all also hammered by the uncertainty surrounding the deal with IMF. The government stands firm that it wants to appoint a new Vice Governor beside the current two and it wants the MPC to control the operation of the foreign reserves, not just the strategy.
Meanwhile, the Hungarian parliament postpones vote on the amendment proposals to the central bank law in light of recent criticism coming from the ECB and the IMF stating that even with the amendments the central bank law will not guarantee the independence of the national bank. The unfavourable market sentiment combined with fears that the EU/IMF talks may not begin soon weighed on the forint sending it to levels near 305.