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Hungary’s central bank (MNB) meets today and while analysts at Danske Bank expect the MNB to keep rates unchanged, pressure to tighten monetary policy is rising.

Key Quotes

“At the last meeting it kept rates unchanged. However, headline inflation has hit the 3.0% target faster than expected. While we previously expected the first key rate increase in mid-2019, changing inflation dynamics, strong economic growth and global monetary tightening could push the MNB to deliver a 25bp hike in H2 18. We do not exclude implicit tightening through liquidity tools.”