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Government To Expand Mask Mandate To Indoor Spaces From Saturday

HUNGARY
  • NBH decided to lift its 1W deposit rate to 2.5% yesterday (vs. policy rate at 2.1%).
  • Deputy Virag mentioned during the press conference on Tuesday that the NBH was uncomfortable with the recent HUF weakness and therefore decided to raise its 1W deposit rate more than the policy rate to partly limit the downside risk in HUF.
  • Weak HUF keeps supporting inflation expectations (public 'enemy': Matolcsy).
  • Hungary will expand a mask mandate to indoor spaces from Saturday amid surging cases.
  • As their CEE peers, the rise in Covid uncertainty combined with the significant tightening in financial conditions (i.e. rising ST rates) may also lead to a downward revision in growth expectations.

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