June 15, 2022 07:43 GMT
- We have seen this week that the global risk off environment pushed the HUF to an all-time low against the Euro and the USD, with EURHUF breaking above the psychological 400 level in the past two days before edging lower this morning.
- HUF remains the most ‘undervalued’ currency among the G10/CEE world, with the NEER HUF (broad index) trading nearly 25% below its LT average (see chart below).
- Even though the sharp HUF depreciation keeps de-anchoring inflation expectations, sell-side analysts still expect the NBH to keep its 1W depo rate steady at 6.75% on Thursday (June 16) as hiking rate further will likely not support the forint in this environment.
- The NBH will publish the minutes of its May meeting today (2pm CET).