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Further Easing of Policy Tools Expected This Afternoon

HUNGARY
  • The NBH rate decision takes focus this afternoon with sell-side analysts unanimous in seeing further easing of the Bank’s monetary policy tools with a cut to the effective rate of 18% as Hungary’s risk backdrop continues to improve. Estimates of the cut to the effective rate range from 75bps to 300bps.
  • The decision on the base rate (expected unchanged) will happen at 1300BST/1400CET ahead of the press conference and expected announcement of the cut to the effective rate at 1400BST/1500CET.
  • Prime Minister Viktor Orban will speak at the Qatar Economic Forum today, having announced yesterday that Hungary plans to purchase gas from Qatar as it seeks to reduce its energy reliance on Russia.
  • Looking ahead to the remainder of the week, gross wage and unemployment rate data are the highlights on the docket.

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