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TD Expects 50bps on Base Rate, 30bps on 1W Depo Rate

HUNGARY
  • TD expects the NBH to hike the base rate by 50bps to 5.90% on Tuesday and the 1-week depo rate by 30bps to 6.75% on Thursday.
  • The NBH has recently lost its enthusiasm to decisively tighten policy.
  • Deputy Governor Virag already signaled the slowdown of base rate hikes to about 50bps per month.
  • The main factor that could bring back the enthusiasm would be the forint weakness.

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