Hungary May Raise Interest Rate to 6.5% This Month, SocGen Says

Oct. 5 (Bloomberg) -- Hungary’s central bank may raise the benchmark interest rate to 6.5 percent from 6 percent on Oct. 25, Societe Generale SA economist Guillaume Salomon said.

Policy makers may intervene verbally if the forint drops past 306 per euro and start “aggressive” rate increases if the currency falls below 315 per euro, London-based Salomon said in an e-mail today after speaking with “a number of contacts” in Hungary.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Zoltan Simon at zsimon@bloomberg.net