lh x cw market report A4_23.03.02 v34 interactive72

The government responded to the strong inflationary pressures by introducing price caps on fuel and food. Moody’s expects the forint to stabilize against the euro and the US dollar as the central bank sharply raised short-term interest rates to combat double-digit inflation in Hungary. The monetary policy rate will peak in the first

quarter of 2023 and the forint will strengthen further against the euro until 2024. Moreover, inflationary pressures are expected to remain high, as in most countries in the region, but have already peaked. However, increased energy costs and soaring food prices have led to a sharp deterioration in the consumer confidence index in the last quarter of 2022. Together with