NBH Cuts One-Day Depo Rate, Alongside Expectations

Following the trim to the upper-end of the rate corridor earlier today, NBH also cut their one-day deposit rate (the effective rate) to 15.00%, from 16.00%, alongside expectations.

Key highlights from the press statement (full statement found here: https://www.mnb.hu/en/monetary-policy/the-monetary...)

• If the improvement in risk perceptions persists, the bank will continue the gradual convergence of the interest rate conditions of the one-day tenders and the base rate at the previous pace
• Maintaining current level of base rate will ensure that inflation expectations are anchored and the inflation target is achieved in a sustainable manner
• Necessary to maintain tight monetary conditions to achieve price stability
• Rising real wages are expected to support a pick-up in GDP growth from the second half of the year
• Inflation and core inflation will continue to decrease at a rapid pace

Their inflation forecast is unchanged, bank still looking for CPI to return to the tolerance band in early 2025 - a pre-existing view.