Hungarian central bank to refrain from acting this week – BBH

The FX research team at BBH expects the MNB to keep its monetary stance unchanged at tomorrow’s meeting.

Key Quotes

“Hungary’s central bank meets Tuesday and is expected to keep rates steady at 0.90%”.

“Further rate cuts seem unlikely for now, but other unconventional measures are possible in H2 if the economic outlook worsens”.

“CPI came in at -0.3% y/y in July and is well below the 2-4% target range.  GDP rose 2.6% y/y in Q2, and the 4-quarter average of 2.3% is the lowest since Q1 2014”.