Hungary Analysis

Economic Analysis - Delayed Hike Still Ahead Of Consensus - 10 APR 2017

In light of a persistently dovish stance from the Hungarian National Bank (MNB) and falling market-based rate expectation, we now believe the MNB will keep its base rate on hold in 2017 while continuing to pursue unconventional easing measures. However, underlying inflationary pressures are building, and we remain above consensus in our forecasts for interest rate hikes in 2018.