Fidesz-KDNP Holds The Steering Wheel Tight

HUNGARY - Report 11 Mar 2014 by Istvan Racz

Executive Summary With the election coming up in early April, our first theme is politics, including campaign events and the voting outlook. Second, we are looking at the rationale behind the MNB’s continued rate cuts in the face of HUF weakening. Third, inflation prospects after the early-2014 CPI data are reviewed. Fourth, we take a look at banks’ 2013 P&L data, assessing the outlook for credit activity. Fifth, we tackle recent GDP developments. Finally, an assessment is given of the macro risks Hungary faces due to the Ukrainian situation. Based on poll results and campaign events, there...

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