Morgan Stanley: Fidesz Party's victory will boost Hungary's stock market and Forint exchange rate.

Morgan Stanley stated that with Fidesz winning an absolute majority in the weekend elections, EU funds are expected to be unfrozen to support economic growth, and there is a high probability that the Hungarian stock market, currency, and bonds will rise. Economists and strategists, including George Giannopoulos, wrote in a report, "Despite an unfavorable external environment, this election result will significantly benefit from reducing the risk premium on Hungarian currency and interest rate curves." If EU funds are unfrozen, Hungary's economic growth potential may increase by 1 to 1.5 percentage points, and a stronger forint will result in the country's central bank "tightening monetary policy by less than our current expectation of 50 basis points." In the medium to long term, the Hungarian forint is expected to outperform other currencies by 5% to 7%, while the yield curve may decrease by 100 to 150 basis points, with long-term yields leading the way.