EM central banks’ meetings this week – BBH

Analysts at BBH gave their views on the upcoming central banks’ meetings in the EM space.

Key Quotes

“National Bank of Hungary meets Tuesday and is expected to keep rates steady at 0.90%.  The bank has moved to making quarterly adjustments to its unconventional policy, and so any changes would likely come at the June meeting.  That said, the economy remains robust even as price pressures are rising”.

“Colombian central bank meets Friday and is expected to cut rates 25 bp to 6.25%.  A couple of analysts look for a 50 bp cut.  CPI rose 4.7% y/y in April, the lowest since July 2015 but still above the 2-4% target.  However, downside risks to growth suggest that the central bank will continue cutting rates”. 

“Bank of Korea meets Thursday and is expected to keep rates steady at 1.25%.  CPI rose 1.9% y/y in April, just below the 2% target.  However, downside risks to growth suggest that the BOK will remain on hold for now”.