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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 1W deposit rate unchanged at 0.75% at its weekly meeting today as the strong HUF momentum is giving policymakers a 'breather'.
- In the end of March, the market was starting to speculate that the HUF weakness was going to 'push' NBH policymakers to start a tightening cycle earlier than expected, which could have weighted on the economic recovery following the difficult first quarter due to the worsening Covid situation.
- The chart below shows that EURHUF is now standing far below the 370 resistance, which was the key level watched by market participants in the end of Q1.
- Forward rates are currently pricing in a 30bps hike over the summer; there is a probability that the NBH starts hiking its benchmark (currently at 0.6%) at its next meeting on June 22, especially following Virag 'hawkish' comments last week.
Source: Bloomberg/MNI
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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