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Hungary Must Not Raise Rates As Forint Drops

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"Hungary may need to sell foreign- currency reserves to stem the forint’s decline to an all-time low versus the euro as lifting interest rates would be a “shot in the head” as the economy slows, Citigroup Inc. said. The forint pared losses after plunging to a record yesterday, while the cost of insuring Hungary’s bonds against default rose to the highest since March 2009. "


More from the source: bloomberg.com


16.11.2011




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