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NBH To Raise 1W Deposit Rate Above Policy Rate

HUNGARY
  • NBH publishes the offered rate on the one-week deposit facility this morning (10.50 London time), expected to be above the policy rate (at 2.1%).
  • The NBH decided to hike its policy rate by 30bps to 2.1% (as expected) at yesterday's meeting.
  • Selling pressure on HUF has remained elevated in the past few weeks despite the NBH hiking rates (down 3.3% vs. USD this month).
  • Virag mentioned that the NBH needs to quickly react to currency-market risk.
  • A weak forint keeps supporting inflation expectations.

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