The Hungarian forint firmed on Monday’s
session from opening values at 282.00
EUR/HUF to 280.10 EUR/HUF. The main
positive impetus was that Hungary’s
president László Sólyom signed the law of
tax increase on Monday thus there will be no
delay in implementation of fiscal package
which aims to consolidate problematic
Hungary’s public finance approved by
parliament last week. Sólyom’s approval
means that large part of the package, such
as corporate tax hike from 16% to 20% as
well as middle rate VAT increase from 15%
to 20% will be implemented already in
September.
Today, there won’t be published any key
macroeconomic data (gross wages are not a
market moving factor) thus the forint will
remain under negative influence of
escalation of the conflict in Middle East.
Concurrently Prime Minister Gyurcsány
together with Finance Minister Veres and
Governor Járai will hold press conference
concerning negotiations on the Convergence
Program, which should be submitted to
European Commission on September 1. But
since we do not expect many details to be
made public we believe this press
conference will come largely as market
neutral.
Forint rebounds on a tax bill.
(CSOB - Investment research)