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MNI NBH Preview - May 2021: Seen on Hold With Strong Focus On Inflation

Hungary Central Bank
  • The National Bank of Hungary (NBH) is expected to keep their benchmark and overnight deposit rate steady at 0.6% and -0.05%, respectively, despite rising inflationary pressures as policymakers aim to keep financial conditions as loose as possible in order to stimulate the economic recovery following the difficult first quarter.
  • However, growing concerns over inflation risks have led to a rising number of policymakers adopting a more hawkish tone in recent weeks, which could result in an early move from NBH if inflationary pressures continue to rise in the short term.

Figure 1: Inflation above upper-end of tolerance band

Source: Bloomberg/MNI

See full preview below:

NBH CB Prev - May 25.pdf


MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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