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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.
Hungary Central Bank
Hungary Central Bank
Executive Summary:
- The NBH is expected to continue its gradual tightening policy by raising its 'core' policy rate by 30bps to 2.7%.
- The ‘core’ policy rate is forecasted to gradually converge towards the 1W depo rate through H1 2022.
- The 1W depo rate is also expected to be increased by 30bps to 4.3% on Thursday (Jan 27) and is likely to be raised to (or above) 4.5% in the ST to ease inflationary pressures and limit the downside risk on HUF.
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The National Bank of Hungary (NBH) is likely to continue its gradual tightening cycle and hike its policy rate by 30bps to 2.7% on January 25. In order to limit the downside risk on HUF and curb inflationary pressures, the NBH has raised its weekly deposit rate by 220bps to 4% in the last two months of 2021 (which is now the effective policy rate). We also expect the 1W deposit rate to be raised by 30bps to 4.30% on Thursday and should reach at least 4.5% in early 2022 (terminal rate). Then, the ‘core’ policy rate is expected to gradually converge towards the 1W deposit rate through H2 2022 (figure 1, right frame).
Source: Bloomberg/MNI
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.
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