Hungary dropped its veto against the EU's financing package for Ukraine on Thursday, ending a week of uncertainty that added downside risks to the currency. Provided the easing in tensions is maintained, there's a good chance that the central bank will step up its easing cycle with a 100bp interest rate cut later this month. Elsewhere, the IMF's argument in its latest article IV report that the Czech currency is "broadly in line with fundamentals" stands in contrast with our view that it remains overvalued. We still think that it will weaken further over the course of the year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services