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23 Feb 2016
NBH expected to hold rates today – TDS
Strategists at TD Securities expect the Hungarian central bank (NBH) to keep its monetary stance unchanged at today’s meeting.
Key Quotes
“In Hungary, in line with the unanimous consensus, we expect the policy rate to be held at 1.35%”.
“The NBH has been indicating for some time that the policy rate is likely to be kept on hold for a considerable period and that any monetary policy easing that is required will be carried out through so-called “unconventional measures”.
“However, we would not rule out the possibility of policy rate cuts this year given that we expect the ECB to cut the Depo Rate by 20 bps in March and that growth is likely to slow somewhat in Hungary this year”.
“The HUF FRA curve is currently discounting 15 bps of cuts by the end of this year, which we think is pretty much fairly valued”.
Key Quotes
“In Hungary, in line with the unanimous consensus, we expect the policy rate to be held at 1.35%”.
“The NBH has been indicating for some time that the policy rate is likely to be kept on hold for a considerable period and that any monetary policy easing that is required will be carried out through so-called “unconventional measures”.
“However, we would not rule out the possibility of policy rate cuts this year given that we expect the ECB to cut the Depo Rate by 20 bps in March and that growth is likely to slow somewhat in Hungary this year”.
“The HUF FRA curve is currently discounting 15 bps of cuts by the end of this year, which we think is pretty much fairly valued”.