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NBH Expected to Hold Rates Constant At 13.0%

HUNGARY
  • The NBH decision takes focus today, where rates are expected to remain on hold at 13.0% as the central bank continues to use alternative liquidity measures as the main monetary tool moving forward. The decision will be made at 1300 GMT/1400 local time.
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  • Elsewhere, the EU should focus on peacemaking in Ukraine instead of sanctions that lead to nowhere and arms supplies worth hundreds of millions of euros, Foreign Minister Szijjarto said in Brussels on Monday as cited by MTI.
  • Szijjarto's comments come despite yesterday's confirmation from Budapest that they would drop their veto against around EUR500mn in military aid for Ukraine following a meeting of EU foreign ministers in Brussels.
  • The seventh tranche of a EUR18bn package of support for Kyiv will now be released after Hungary faced staunch criticism from other EU members. Given that the disbursement from the European Peace Facility (EPF) constituted a foreign policy decision, unanimity was required from member state gov'ts in order for the funding to go ahead.
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