May 13, 2022 08:37 GMT
- Yesterday, the NBH decided to leave its 1W depo rate unchanged despite the ‘positive’ surprise in inflation this week and HUF ‘weakness’.
- As a reminder, inflation accelerated to 9.5% in April (vs. 8.9% exp.), up from 8.5% the previous month and would be 2 to 3ppt higher in the absence of price caps.
- HUF has been weakening following the decision, with EURHUF surging above the 385 level earlier (highest level since March 9).
- Next strong resistance to watch on the topside stands at 390.
- Some European Union nations are saying it may be time to consider delaying a push to ban Russian oil so they can proceed with the rest of a sanctions package if the bloc can’t persuade Hungary to back the embargo (BBG).