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JPM See No Further NBH Hikes on Back of Successful Liquidity Draining Op

HUNGARY
  • JPM write that yesterday’s debut long-term tender equates to roughly equivalent to a 50bps hike. Due to the success of the operation, JPM no longer see base rate increases, with policy being tightened further via alternative instruments. They see the effective policy rate rising towards 14.5%. For now the NBH is likely to do a tender per month, but this could change.
  • Hungary has achieved an exemption of pipeline deliveries of crude from European Union oil price caps, and ensured nuclear energy was exempt from the latest sanctions imposed on Russia, according to the Foreign Minister Szijjarto.
  • Industrial production came in firmer than forecast for August, rising at a rate of 9.3% Y/Y vs. Exp. 8.4%. Retail sales, however, were weaker than expected at 2.4% vs. Exp. 4.7%. The one-week deposit rate was unchanged at 13.00%.
  • Markets watch for any comments from the NBH deputy governor Kandracs, who was due to be speaking on green finance at 9am local time this morning.

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