The monetary council argued that the Hungarian economy is fundamentally different from those of other emerging market countries, which are considered vulnerable.

The MNB considers the recent hit on emerging markets a one-off event, when investors realised that Hungary is not Turkey, analyst Peter Attard Montalto of Nomura commented.

Disagreeing with the MNB’s assessment, he said the rate cut leaves Hungary more exposed to the markets, as tension concerning emerging markets will not go away.

Source: Hungary Around the Clock

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