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Morning Summary: NBH To Buy Domestic Green Government Bonds

HUNGARY
  • Covid cases continue to fall with the 7D SMA of daily new cases down from 7,000 to 5,000 in the past week.
  • NBH communicated on Monday that it plans to purchase domestic green bonds; according to Reuters, Hungary's debt agency is planning to issue a 30-year Forint-denominated green government bond in April.
  • Since the start of the pandemic, the NBH has purchased a total of 1.8tr HUF of government bonds as part of the QE program in order to stimulate the economy, and has recently hinted the market that it will continue to maintain financial conditions as loose as possible to stimulate growth after a difficult first quarter despite the rise in inflationary pressures.
  • The spike in CPI inflation, which is expected to reach nearly 5% in Q2 amid rallying fuel price, is only seen to be temporary and inflationary pressures should ease in the second half of this year.
  • No major economic data is expected today.

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