The Impact of the Foreign Exchange Market on the Interbank Interest Rates and the Credit Activity of Hungarian Households

  • Jacek Bednarz The John Paul II Catholic University of Lublin, Faculty of Social Science
  • Stanisław Gędek Rzeszow University of Technology
Keywords: foreign exchange; interbank market; monetary transmission mechanism; monetary policy; household credit


The study attempts to assess the impact of developments in the forint exchange rate against euro on the level of interest rates on the Hungarian interbank market and the observed credit activity of the household sector. The analysis showed the flow of Granger causality sense within the mechanism of monetary transmission from the currency market to the credit activity of Hungarian households, especially in contract periods of more than one year and five years. At the same time, the transmission of information between the forint exchange rate (EUR/HUF) and the Hungarian interbank market showed the bidirectional impact of impulses.


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