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NBH To Maintain Its Pace on ‘Core’ Policy Rate (50bps hike)

HUNGARY
  • The NBH is meeting this week (Feb 22) and is expected to raise its ‘core’ policy rate by 50bps to 3.4%
  • On Thursday, the NBH decided to keep it 1W depo rate unchanged at 4.3% (as expected) for the third consecutive week.
  • As a reminder, deputy Governor Barnabas Virag said during his latest press conference that the central bank plans to shift to monthly moves in the 1W depo rate, likely to hike by another 30bps in February and March.
  • The core policy rate is expected to gradually converge towards the 1W depo rate through H1 2022.

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