Hungary: NBH likely to keep all its policy rates on hold – TD Securities

In line with the unanimous consensus, analysts at TD Securities are expecting the NBH to keep all its policy rates on hold at today's Monetary Council (MC) meeting in Hungary.

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“We expect NBH not to be too concerned about the recent break of EURHUF above 330 and to take its cue from dovish ECB and Fed to keep its policy loose. We'll be looking at the comments made around the new inflation report and GDP forecasts, which NBH will have at hand.”

“Given the dovish external environment and Governor Matolcsy's concerns about slowing growth, we may see a very minor loosening in policy with respect to the Q4 liquidity target and HUF300bn program to buy domestic corporate bonds. However, we think that any loosening will be restrained by the fact that EURHUF reached a historic high of 334. Overall, we expect NBH to remain cautious and continue with its wait-and-see approach.”