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:
- The NBH maintained the pace of its tightening cycle and raised its base rate by 100bps yesterday to 11.75% (as expected), its highest level since April 2004.
- The central bank is also likely to readjust the 1W depo rate by the same magnitude on Thursday.
- In its statement, the NBH reiterated that it will continue to raise rates until CPI outlook stabilizes.
- In addition, the central bank also announced that it will raise the required reserve ratio for banks and introduce a LT deposit facility to absorb liquidity at longer maturities.
Link to full review:
The NBH maintained the pace of its tightening cycle and raised its base rate by 100bps yesterday to 11.75% (as expected), its highest level since April 2004. The central bank is also likely to readjust the 1W depo rate by the same magnitude on Thursday. In its statement, the NBH reiterated that it will continue to raise rates until CPI outlook stabilizes. In addition, the central bank also announced that it will raise the required reserve ratio for banks and introduce a LT deposit facility to absorb liquidity at longer maturities.
Deputy Governor Virag mentioned during the press conference that the interest rate path will strongly depend on future CPI prints and EU recovery fund talks. Economic data showed that CPI inflation accelerated to 13.7% YoY in July (vs. 13% exp.), up from 11.7% the previous month and is expected to rise up to 16% in August.
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.