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:
- Yesterday, the NBH decided to raise its core policy rate by 100bps to 4.4%, its highest level since February 2013.
- The acceleration in the tightening pace was broadly expected following the recent adjustments via the 1W depo rate facility.
- While the market is still expecting another 30bps hike on the 1W depo rate tomorrow, the NBH may market a pause and leave its ‘effective’ rate unchanged at 5.85%
Link to full review:
Yesterday, the NBH decided to raise its core policy rate by 100bps to 4.4%, its highest level since February 2013. The acceleration in the tightening pace was broadly expected following the recent adjustments via the 1W depo rate facility. As a reminder, the NBH has increased its 1W depo rate by 125bps since the start of the month to ease the selling pressure on HUF following the drastic depreciation in the forint in the end of February/ beginning of March. The HUF partly recovered from its losses due to an easing in market tensions prompted by the Russia/Ukraine conflict. EURHUF retraced lower following yesterday’s decision and found support at the 370 level before consolidating higher.
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.