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Morning Summary: January-March Unemployment Rate Steady At 4.5%

HUNGARY
  • Covid daily new cases continue to decrease with the 7D SMA falling to 2,600, down from 9,300 (March 26 high) and from 3,800 the previous week. As the vaccination campaign accelerates, officials allowed cafes and bars to reopen terraces over the weekend.
  • As expected, the NBH decided to leave its benchmark rate and the overnight deposit rate steady at 0.6% and -0.05%, respectively, to stimulate the economic recovery after a difficult first quarter. In the statement of its monetary policy meeting released yesterday, NBH mentioned that it was 'ready to act' if CPI risks continue to strengthen through the year. The NBH also decided to extend QE, setting the next review when the stock will reach 3 trillion HUF. As a reminder, the NBH has been purchasing around HUF 60bn of HGBs per week (total amount of gvt bonds purchased stand currently slightly below 2 trillion HUF).
  • This morning, January-March unemployment rate came in at 4.5% (lower than 4.7% expected) according to the Hungarian Statistics Office.
  • Next economic data to watch are the average gross wages YoY on April 29 and the PPI YoY on April 30.

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