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Selling Pressure on PLN remains Elevated Amid Elevated Political Uncertainty

HUNGARY
  • At 9am (London time), Parliament starts 2-day session, lawmakers will discuss 2022 state budget; they may also discuss pandemic response (BBG).
  • At a meeting with the V4 countries, French President Macron said yesterday that he wanted to move forward with resolving the on-going dispute between the EU and Poland/Hungary over rule of law in H1 2022.
  • According to the NBP minutes (last week), the majority of NBP members agree that the surge in inflation was still mainly the result of the impact of external factors outside of the monetary policy realm, including higher energy and food prices.
  • With inflation expected to peak in December and uncertainty rising (due to new restrictions), it is likely that the NBP will proceed with gradual 25bps hikes in the coming meetings.
  • Next economic data to watch will be current account balance coming out today (1pm London time) and Core CPI on December 16.

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