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NBH Raises 1W Depo Rate by 30bps To 4.3%

HUNGARY
  • NBH decided to raise its 1W depo rate by 30bps to 4.3% (as expected).
  • This move followed this week's decision to hike the 'core' policy rate by 50bps to 2.9%.
  • Deputy Governor Barnabas Virag said during the press conference on Tuesday that the central bank plans to shift to monthly moves in the 1W depo rate, but will not hesitate to act via the 1-week facility if the HUF remains weak.
  • he ‘core’ policy rate is forecasted to gradually converge towards the 1W depo rate through H1 2022.
  • EURHUF is nearly unchanged following the decision, currently trading slightly above the 360 level; ST resistance to watch on the topside stands at 361.80 (100DMA). On the downside, support to watch below 360 stands at 357.55 (200DMA).

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