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:
- NBH seen raising rates by a further 100bps, putting the benchmark at 12.75%
- HUF effective exchange rates remain close to recent lows
- CPI has extended further above tolerance band, hitting 15.6% in August
Inflationary pressures continued to rise in Hungary, with CPI accelerating to 15.6% in August (vs. 15.9% exp.), the highest level since 1998 and up from 13.7% the previous month. This keeps prices significantly above the bank’s 4-percent upper tolerance band. Inflation continues to be driven by higher food and consumer durable prices, and the current prints would be even higher (by a few ppts) if the government had not rolled back prices for a number of staples.
Market analysts have mentioned that inflation could rise further in the coming months due to repricing and tax hikes, reaching 20% or more if energy price controls were lifted. Year-end sell side forecasts have been reviewed sharply to the upside in recent months, with analysts expecting inflation to stand at 12% at the end of the year.
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.