Free Trial

NBH Flags Moral Hazard Risks of Government Mortgage-Capping

HUNGARY
  • The National Bank of Hungary pushed back against government steps that it sees as weakening the monetary transmission mechanism, according to a report released by the bank yesterday.
  • The bank flagged that the government’s move to extend a cap on mortgage rates may create moral hazard among borrowers – with the report likely being written before a second step, wherein the government capped deposit rates on institutional and wealthy retail clients.
  • Following the vote in European Parliament yesterday to adopt the resolution to recommend a freezing of Hungary funds, Foreign Minister Szijjarto spoke against claims that Hungary are blocking aid to Ukraine, stating that Hungary are opposed to a joint EU loan proposal, rather than aid to Ukraine itself.
  • Unemployment rate data is due in just under 30 minutes, with markets expecting the rate to have ticked higher to 3.9% from 3.8% previously.

To read the full story

Close

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.