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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
- The NBH opened the door to larger interest-rate increases days after a decision to keep to a slower pace of monetary tightening amid accelerating price-growth prompted investors to sell the forint (BBG).
- We saw that selling pressure on HUF has remained elevated following the NBH decision to hike by 15bps last week.
- A weak HUF would support inflation expectations in the medium term, which NBH Governor Gyorgy Matolcsy called a 'public enemy'.
- A 30bps hike could have eased the volatility on the long end of the interest rate curve and benefit the forint in the short term.
- HUF is one of the weakest FX performers among the EM world in recent weeks, down 5.5% against the USD and 4.3% against the Euro since the start of September (see chart).
- Last week, we saw that economic sentiment moved back to positive territory for the first time since 2019.
Source: Bloomberg/MNI
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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