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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.
HUNGARY
- As expected, the NBH decided to leave its benchmark rate steady at 6.45% despite the significant HUF weakness.
- The forint experienced significant selling pressure following PM announcement yesterday that Hungary will use emergency measures for a Ukraine crisis windfall tax on large companies, which will affect banks, telcos, energy, retailers and airlines over a two-year period.
- This news came in one day after Orban declared a state of emergency.
- EURHUF broke above the 390 level yesterday and is gradually approaching its key resistance at 400, which corresponds to the pair’s all-time high.
- Selling pressure has surged on domestic equities, with BUX index falling below early March lows; the index is down over 30% since its January highs.
- Next NBH meeting is on May 31; the NBH is likely to slow down the pace of its tightening cycle on the ‘core’ policy rate (i.e. 50bps hike).
- However, risks are skewed to the ‘hawkish’ side as HUF weakness keeps supporting inflation expectations (‘public enemy’).
Source: Bloomberg
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.
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