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27 May 2015
Monetary easing is not over in Hungary – TDS
FXStreet (Edinburgh) - Strategist Cristian Maggio at TD Securities, believes the Hungarian central bank (NBH) could cut its rates further in the upcoming meetings.
Key Quotes
“We see the NBH easing another 15bp to 1.50% at the next meeting, but two way risks are increasing”.
“On the one hand, the NBH may interrupt easing sooner than we expect if market jitters keep the forint under prolonged pressure. A smaller pace of easing is also possible like in the previous easing cycle”.
“On the other hand, if the HUF remains within a fluctuation range to the EUR that is considered tolerable, the NBH may decide to cut rates in a very gradual but steady manner, forcing the base rate below the 1.50% terminal rate we are currently forecasting”.
Key Quotes
“We see the NBH easing another 15bp to 1.50% at the next meeting, but two way risks are increasing”.
“On the one hand, the NBH may interrupt easing sooner than we expect if market jitters keep the forint under prolonged pressure. A smaller pace of easing is also possible like in the previous easing cycle”.
“On the other hand, if the HUF remains within a fluctuation range to the EUR that is considered tolerable, the NBH may decide to cut rates in a very gradual but steady manner, forcing the base rate below the 1.50% terminal rate we are currently forecasting”.