NBH To Consider Raising Rates At Monthly Meetings

• Following NBH decision to raise the benchmark rate by 30bps to 0.9%, Governor Matolcsy confirmed at a press conference that NBH is starting tightening cycle to anchor inflation expectations.
• The NBH will consider raising rates at monthly meetings depending on new data; policymakers are very likely to raise rates until CPI stabilizes.
• NBH sees CPI inflation at 4.1% in 2021 (slightly above upper tolerance band at 4%) and 3.1% in 2022.
• NBH economists expect GDP growth to increase by 6.2% in 2021 and 5.5% in 2022, respectively.
• Governor Matolcsy said that NBH will keep QE program for now and will take a flexible approach in the future.
• The NBH will also raise the 1W deposit rate to 0.9%
• NBH decision was unanimous.
• HUF keeps appreciating following NBH Governor's comments, breaking below its 297 resistance; next level to watch on the downside stands at 296 (overnight low), followed by 294.

https://www.mnb.hu/en/monetary-policy/the-monetary...