Hungary: NBH to keep all its policy rates unchanged – TDS

Analysts at TD Securities are expecting the NBH to keep all its policy rates and the liquidity target to stay unchanged at today's Monetary Council (MC) meeting in Hungary.

Key Quotes

“The external environment remains dovish and domestic data has come out more-or-less in line with NBH’s September view. As such, we think NBH will see no reason to change their loose monetary policy setup.”

“Last week, Deputy Governor Nagy, at a conference in Budapest once again said that inflation has “effectively disappeared” and added that low interest rates are a “new norm”. This suggests the final paragraph of the press statement is likely to say that inflation risks are asymmetric and to the downside. We also them to state the NBH will remain in a “wait-and-see” data-driven mode.”