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A 30bps Hike Is Now Priced In For The July 27 NBH Meeting

HUNGARY
  • Yesterday, economic data showed that Inflation continues to surprise positively in Hungary and rose by 5.3% YoY in June (vs. 4.9% exp.) and up from 5.1% the previous month.
  • This new print confirms that NBH will continue its tightening cycle and gradually rise its benchmark rate to curb inflationary pressures.
  • Odds for another 30bps hike at the next meeting (July 27) have been rising significantly; FRA 6Mx9M is currently trading nearly 100bps above the Bubor 3M.

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