FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

NBH Leaves 1W Depo Rate Unchanged As Selling Pressure on HUF Eases

HUNGARY
  • This morning, the NBH decided to leave its 1W Depo rate unchanged at 4.3% as expected, after raising it by 30bps last week.
  • Based on Barnabas Virag press conference, the NBH will now proceed with monthly hikes in the 1W depo rate and is likely to hike by another 30bps in February and March, which would levitate the effective policy rate to 4.9% in Q1.
  • However, the NBH could once again act via the 1-week facility if the HUF remains weak under the current environment.
  • The ‘core’ policy rate (currently at 2.9%) is expected to gradually converge towards the 1W depo rate through H1 2022.
  • Following last Tuesday’s decision, the NBH could proceed with 50bps hikes in the coming meetings, implying that the ‘core’ policy rate will be raised to 1W depo rate in four meetings (May 2022).
  • Selling pressure on HUF has eased in the past week, with EURHUF trading back below the 355 level this morning (after reaching a local high at 362.10 in the end of January). ST support to watch on the downside stands at 350.90. On the topside, resistance to watch above 355 stands at 357.40 (200DMA).
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.