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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.
Hungary Central Bank
EXECUTIVE SUMMARY
- NBH is expected to slow down the pace of its policy tightening cycle and hike by 15bps on September 21
- Even though inflationary pressures remain firm, economic uncertainty keeps rising
- Aggressive tightening cycle could eventually lead to a significant deceleration in the economic activity
- Stronger USD, contraction in Chinese liquidity and Evergrande 'collapse' pose a threat to the global economic activity
The National Bank of Hungary (NBH) is expected to slow down the pace of its policy tightening cycle and raise its benchmark by 15bps up to 1.65% on September 21, following three consecutive 30bps hikes. Even though inflationary pressures remain elevated in the CEE region, the uncertainty over a range of risk factors has been surging and therefore raising rates too aggressively could start to weigh on the economic recovery. The NBH is then likely to raise its benchmark rate by 15bps at each of the next three meetings, which would lift the policy rate up to 2.1% by the end of the year.
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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