Hungary: Rates and the liquidity target to stay unchanged – TD Securities

Analysts at TD Securities are expecting all rates and the liquidity target to stay unchanged in Hungary today as both domestic and global developments, for the time being, remain supportive of maintaining loose monetary policy.

Key Quotes

“Domestically, there has been a fall in both headline inflation (3.4% y/y in Jul) and core ex-taxes inflation (3.2%), which are well below the top of the target range of 4%.”

“Globally, the financial environment remains decidedly dovish, especially in Europe with the ECB set to ease policy further. Overall we expect the MPC meeting to be a non-event. Perhaps the September meeting will be of more interest, as the MPC will have a new inflation report at hand and will be due to review the quarterly liquidity targets.”