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NBH Likely To Proceed With a 100bps Hike

HUNGARY
  • The NBH is likely to accelerate the pace of its policy tightening following the recent adjustment on the 1W depo facility.
  • The central bank will probably proceed with a 100bps hike on its ‘core’ policy rate at today’s meeting, which would levitate the benchmark rate to 4.4%.
  • EURHUF still trades above the 370 key level and therefore further adjustment via the 1W depo rate facility may be needed to support the forint.
  • EURHUF has been retracing slightly higher in the past few days after finding support at 370 last week; ST resistance to watch on the topside stands at 376.50. On the downside, support to watch below 370 stands at 364.75 (100DMA).

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