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GS Sees NBH Rates Reaching +11.50%

HUNGARY
  • The recent large rate hikes by the MNB speak to the central bank's concerns over the ongoing Forint weakness.
  • The exchange rate pressures in part stem from Hungary’s deteriorating external position and, owing to these fragilities, the MNB is likely to remain under pressure in the near term.
  • But GS also thinks that ongoing inflation dynamics will require policy tightening, and analysts now forecast rates to reach +11.50% in Hungary.

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