BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BTP Short Term and BTPeis on Thursday

EZ/UK T-Bill Calendar: Italy, UK Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EURHUF Remains Close to Day’s Lows as NBH Reject Lending Rate Proposal

HUNGARY
  • Government officials proposed using the yield based on Hungarian T-bills with a 3-month maturity as the main reference rate used by lenders. Those reference yields are currently ~2ppts lower than the 3-month BUBOR rate (9.40%) and would have therefore represented a relatively significant effective easing step. Instead, NBH officials stated that proposals to replace BUBOR are “misguided”.
  • Moreover, the move would have been further evidence of disharmony between government officials and central bank. Last week, Prime Minister Orban urged the NBH to reduce interest rates in a bid to spur economic growth, stating that he does not fear reflationary risks. Government interjection into central bank matters have provided a headwind to the HUF in the past.
  • EURHUF continues to operate close to the lows printed on the back of the NBH comments, at around 385.50 and 0.5% lower on the day. The cross has fallen back below key resistance and the bull trigger at 385.77, the Dec 18 high, though the break earlier in the week has nevertheless strengthened bullish conditions overall. Initial support to watch lies some way off at 381.38, the 50-day EMA.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.