According to analysts at TD Securities, there is little doubt that the Hungary’s Monetary Council (MC) will take its first step on the path of policy “normalization” today. Key Quotes “This has been flagged for some time by the NBH, with a move in core inflation ex indirect tax effects above the 3% target stated as being a potential trigger for the process to begin – in February this core measure moved up to 3.2% Y/Y.” “We think there is a consensus that the NBH will reduce the amount of HUF liquidity provided to the market through FX swaps. What is less clear is if they will change interest rates.” “In the Bloomberg survey, 9/20 respondents expect the O/N Deposit Rate to remain at -0.15%, but 6 expect a 10bps hike and 5 expect a 15 bps hike. We are inclined to take previous guidance from the NBH at face value and to think that the first move in normalization will not involve a hike.” “A lot will depend on the forecasts in the March Inflation Report, which the MC will have to hand, but we think that recent HUF strength might embolden them to respond fairly dovishly to the move in core inflation above the 3% target.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Forex Today: Aussie cheers Asia risk-reset; focus on Brexit/ UK politics FX Street 4 years According to analysts at TD Securities, there is little doubt that the Hungary's Monetary Council (MC) will take its first step on the path of policy "normalization" today. Key Quotes "This has been flagged for some time by the NBH, with a move in core inflation ex indirect tax effects above the 3% target stated as being a potential trigger for the process to begin - in February this core measure moved up to 3.2% Y/Y." "We think there is a consensus that the NBH will reduce the amount of HUF liquidity provided to the market through FX swaps. What… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
