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Virag Says Pace of Rate Cuts to Slow in Q2

HUNGARY

Initial comments from Deputy Governor Virag's post-decision press conference (via BBG):

  • Central bank to slow rate-cut pace in 2Q
  • NBH voted unanimously for 75bps march rate cut
  • Monetary policy entering 'new phase'
  • NBH also discussed 50bps, 100bps rate cut
EUR/HUF saw a slight dip on release of the policy statement, with the above comments from Virag (specifically that the pace of rate cuts will slow down from Q2) providing additional downside momentum to take the cross to a new daily low. Support to watch lies at 394.12, the 20-day EMA, a clear break of which could expose the 50-day EMA further out. EUR/HUF last deal at around 394.85.
  • The NBH reiterated in its policy statement that a “careful” approach is warranted in the coming months but refrained from offering firm guidance over its rate path. The downward revisions to the 2024 inflation estimates were expected given CPI has crossed below forecast for much of this year.

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