NBH to cut rates tomorrow – TDS

FXStreet (Edinburgh) – Strategist Paul Fage at TD Securities expects the Hungarian central bank (NBH) to cut its benchmark rate by 10 bp at tomorrow’s meeting.

Key Quotes

“At tomorrow’s MPC meeting, we expect the National Bank of Hungary (NBH) to cut its key policy rate, the base rate, by 10 bps to 1.40%. This is in line with the consensus expectation”.

“At the June MPC meeting, forward guidance in the press statement was changed to suggest that the end of the easing cycle is approaching and that the pace of cutting will slow”.

“After the 10bps cut we expect tomorrow, we think there will probably be one more 10bps cut, most likely at the August meeting, bringing the base rate to 1.3%”.

“That will then be the end of the easing cycle. The HUF FRA is discounting another 20 bps of further easing, although the curve implies a slower pace of rate cuts than we expect”.

Strategist Paul Fage at TD Securities expects the Hungarian central bank (NBH) to cut its benchmark rate by 10 bp at tomorrow’s meeting…

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