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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.
HUNGARY
- NBH Deputy Governor Virag said at a conference in Budapest that the central bank will continue to hike interest rates in ‘gradual, decisive step’.
- ‘Benchmark’ rate will continue to be hiked in smaller increments than the 100bps steps seen at the last two meetings.
- Virag expects CPI inflation to reach double digits in the near term and added that real rates must turn positive in order to reach inflation target.
- However, the HUF weakness could ‘push’ NBH policymakers to act via the 1W depo rate facility in the near term as a depreciating forint keeps supporting inflation expectations.
- Analysts expect the NBH to keep its 1W depo rate steady at 6.45% on Thursday; however, the probability of a 30bps hike is non-negligible as EURHUF continues to retrace higher.
- EURHUF has been retracing sharply higher this week as political uncertainty has been weighing on the forint; the pair is currently trading at around 390. Key resistance remains at 400, which corresponds to the pair’s all-time high.
Source: Bloomberg
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.
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