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NBH To Hike At Each of the Remaining (5) Meetings for 2021

HUNGARY
  • According to the minutes of the July 27 policy meeting, the NBH board voted unanimously to raise the benchmark rate by 30bps to 1.2%.
  • NBH is very likely to raise its benchmark rate at each of the remaining five meetings (in 2021); 15bps hikes priced in for next meetings.
    • ' The Council considered itjustified to continue the cycle of interest rate hikes by taking firm steps on a monthly basis toensure price stability, avoid second-round inflationary effects and to anchor inflation expectations. '
  • Next meeting will be on August 24: the recent deceleration in inflation in July (to 4.6% YoY vs. 4.8% expected) puts less pressure on NBH policymakers to hike aggressively.
  • Next hike will very likely be 15bps.

Link to the NBH minutes:


https://www.mnb.hu/letoltes/roviditett-jegyzokonyv...

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