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HUNGARY: JP Morgan See 25bp Rate Cut as More Likely Than 50bp This Month

HUNGARY
  •  JP Morgan now think it is a bit more likely the NBH will shift the pace of rate cuts lower to 25bps this month (previously they expected a final 50bp move before shifting to 25 in June).
  • After that they expect the NBH to cut further to 6.25% at the end of the year (6% previously). They note that risks are skewed for less cuts overall: if core inflation keeps coming higher than expected, JPM would see a higher rate path and likewise, if expectations for the Fed change, they could also adjust the NBH further.

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