Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Executive summary:
- Rates expected to be held as alternate liquidity measures continue to be used as the main monetary policy tool
- The NBH will be concerned by recent CPI figures as well as the upward risk to inflation following the removal of the fuel price cap
- Analysts are uniform in seeing no change to headline policy rates this week
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EU countries reached a preliminary agreement this month to clear the way for Ukraine to receive crucial aid from the bloc after Hungary dropped its opposition. In return, EU nation states approved the COVID-19 recovery plan for Budapest (worth circa €5.8bln) with a few conditions (thereby bolstering the rule of law in the country).
While the deal saw a short-term HUF rally against its regional peers and the euro, the forint remains generally weak overall. The NBH will want to see a significant strengthening of the currency before reversing the hiking cycle as they made clear in November that a material improvement in risk-sentiment is necessary.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.