Press speculates President of the National Bank of Hungary Mr András Simor might have referred to the abolition of currency band in its speech yesterday when he said the central bank's targets could easiest be reached with full independency. Currently, the Hungarian forint
can trade in the band range of 240.01-334.76 to the EUR, which is not fully consistent with the mid-term inflation targeting policy of the Central Bank. Earlier both the NBH and the Finance Minstry denied they would plan to abolish the currency band of the HUF.
Our view: We believe the Hungarian forint
could strengthen on the back of renewed speculations on the abolition of the currency band.