Created
: 2024.09.24
2024.09.24 20:50
The Hungarian MPC paused monetary easing in August as underlying inflation indicators were not improving at all in the preceding months.
"The guidance remained that further rate cuts were in the pipeline, but not immediately - stubborn service sector inflation did not allow this. The central bank (MNB) wanted to be cautious and aim for a positive real interest rate at the end of the easing cycle. Against this background, market expectations remained for two more 25bp rate cuts by the end of the year."
"Circumstances have slightly changed since, and one of these cuts is likely to be made today. In August, Hungarian inflation indicators improved sharply, with both headline and core inflation momentum noticeably decelerating. The increase in tax-adjusted core CPI slowed from a preceding 3-month average rate of circa 0.4% m/m to 0.2% m/m."
"Given the many dovish signals by major global central banks recently, it is to be expected that MNB would now nudge its base rate lower from the current 6.75%. The forint is currently benefiting from a stronger euro, and is unlikely to be negatively affected by such a rate cut."
Created
: 2024.09.24
Last updated
: 2024.09.24
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy