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NBH Stands Ready To Intervene In A Decision Manner Using Every Available Instrument

HUNGARY
  • Yesterday, the NBH announced that its will align its base and 1W depo rates at 9.75% following the 200bps hike on the 1W depo rate last Thursday.
  • The NBH mentioned in its statement that it will need to keep tighter monetary conditions for longer due to elevated CPI.
  • The central bank stands ready to intervene via the 1W depo rate facility if ST market risks continue to surge.
  • The NBH also stands ready to intervene in a decisive manner using every instrument in its monetary policy toolkit, if necessary.
  • Demonstrators blocked a bridge over the Danube river in Budapest to protest new legislation that is likely to result in a tax hike for potentially hundreds of thousands of Hungarians (BBG).
  • Today (2pm CET), the NBH will release the minutes of its June meeting.

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