FXStreet (Edinburgh) – Strategists at TD Securities see the NBH keeping its monetary stance intact at today’s meeting.
Key Quotes
“We and mkt expect the National Bank of Hungary to keep its policy rate at 1.35%”.
“Sept CPI surprised to the downside at -0.4% Y/Y after 0.0% in August, almost entirely as a result of the fall in fuel prices. In fact core inflation moved up to 1.3% Y/Y in September from a prior 1.2%”.
“Furthermore, the impact of lower commodity prices was already to some extent factored into the forecasts in the September Inflation Report, which sees headline inflation only reaching the 3% target towards the end of 2017”.
“MPC members had this report to hand when they voted unanimously for rates to be on hold at the September meeting. Given the MPC statement to keep the policy rate on hold for some considerable time, we do not see any reason why they would change rates today”.
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