Hungary: Monetary Council likely to keep rates on hold - TDS

Analysts at TDS expect the Hungary’s Monetary Council to keep all its policy rates on hold today, i.e. the policy rate will be held at 0.9% and the O/N Deposit rate will be held at -0.15%, in line with the unanimous consensus.

Key Quotes

“March CPI inflation was running at 2.0% Y/Y, comfortably below the 3.0% target, which the NBH sees being reached on a sustainable basis not until the middle of next year. Monetary policy is likely to still maintain a dovish bias, but it is unlikely that any new, "unconventional" easing will be announced. The NBH will continue to keep rates low at the short-end through FX swaps and at the long-end through its program of bond purchases and swap tenders.”