24 June 2016
At the referendum, citizens of the United Kingdom have voted to exit the European Union, which has led to volatility in global financial markets and Hungarian asset prices. The Magyar Nemzeti Bank constantly monitors developments in the financial and government securities markets. It is prepared to manage any risks that may arise and is ready to take all efforts needed in order to maintain financial stability.
According to the results of the referendum of the United Kingdom’s European Union membership on 23 June 2016, the majority of voters have voted to exit the European Union. The exit procedure will take shape after lengthy negotiations, and consequently the precise impact of the exit on the real economy can be assessed only after the negotiations are complete.
Uncertainty around the future relationship between the United Kingdom and the European Union has led to turbulence in money and capital markets. Rises in risk indices have caused volatility in Hungarian asset prices as well; however, the magnitude of this is not considered excessive in international comparison.
There has been a decrease in Hungary’s vulnerability in recent years, significantly reducing the risks associated with the country’s economy: both external debt and foreign currency exposure have fallen sharply; the current account has been in large surplus; fiscal policy has been disciplined for several years; government debt has been falling gradually and the country’s foreign exchange reserves are at adequate levels, significantly above the reference values closely watched by analysts. All this has been reflected in the country’s improving debt rating: Fitch Ratings decided to upgrade Hungary’s sovereign debt rating in May. As a result, the country’s rating moved back to investment grade again.
The Magyar Nemzeti Bank constantly monitors developments in the financial and government securities markets. It is prepared to manage any risks that may arise and is ready to take all efforts needed in order to maintain financial stability.