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NBH To Hike Base Rate By 30bps

HUNGARY
  • The NBH is likely to hike its policy rate by 30bps to 2.4% today (1pm London time). Press briefing (with statement) will start at 2pm.
  • NBH has raised its 1W depo rate by 150bps in the past month to limit HUF weakness and curb inflationary pressures.
  • The 1W deposit rate could reach 4% in early 2022 and the policy rate is expected to gradually converge towards the 1W deposit rate through H2 2022.
  • Yesterday, Chief Medical Officer Muller confirmed the first cases of Omicron Covid-19 variant.
  • Hungary opened books on a green panda bond, strengthening its position as the European country with the closest ties to China’s debt capital markets and becoming the first sovereign to offer green pandas (BBG). Panda bonds are RMB-denominated bonds issued in mainland China by a foreign entity.

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