HUF gains as contested central bank law delayed

Bloomberg reports that Hungarian cabinet decided to send back a contested change in central bank's law for further consultations as policymakers seek to defuse feud with monetary policy authorities, that has pressured Hungarian forint recently. The proposed changes to central bank's charter would allow government to more tightly supervise central bank's activity in areas not related to monetary policy. Hungarian National Bank governor Matolcsy said thatthe legislation was an attack on the institution's independence.

Hungarian forint jumped in response to the report, with EURHUF dropping around 0.7% over the past 20 minutes.

Source: xStation5

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