Hungary’s rate decision unlikely to have much effect on Forint – Commerzbank

The National Bank of Hungary is expected to maintain policy rates unchanged. The decision is unlikely to affect the Forint, in the view of economists at Commerzbank. 

MNB’s rate decision a non-event

“A rise in the Hungarian inflation rate to 22.5% in November is no doubt unfortunate – this is the highest level since 1996. But the Hungarian central bank (MNB) will nonetheless keep its key rate unchanged at 13% today, which consensus is also expecting.” 

“Initially inflation in December is likely to rise further after the fuel price cap was abolished. As a result, HUF might get a battering in mid-January when the December inflation data is published. Today’s rate decision is likely to be a non-event for the market though, thus not having much effect on the exchange rates.”