Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Executive Summary:
- NBH to hike 'core' policy rate by 50bps today and 1W depo rate by 30bps on Thursday
- The trajectory of the 1W deposit rate will strongly depend on the dynamics of HUF
- CEE currencies have been very sensitive to the geopolitical uncertainty in Russia
Link to full preview:
The National Bank of Hungary (NBH) is likely to maintain the pace on its policy tightening and raise its ‘core’ policy rate by 50bps to 3.4%. The central bank decided to accelerate the tightening process on its ‘core’ rate last month by increasing the pace of hikes to 50bps (from 30bps previously). In order to continue its “combat” against inflation, the NBH has also been acting via the 1W facility, with the 1W depo rate currently standing at 4.3%. Deputy Governor Barnabas Virag said during his latest press conference (January) that the central bank plans to shift to monthly moves in the 1W depo rate, meaning they’re likely to hike by a further 30bps in February and March.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.