Monetary Council tomorrow: no policy change, no important announcement expected

HUNGARY - In Brief 23 Jul 2018 by Istvan Racz
Analysts by and large uniformly expect no policy change and no important announcement to come out of tomorrow's Monetary Council rate-setting meeting.Even though the forint is somewhat weaker now than it was immediately before the June rate-setting meeting, the heavy depreciation pressure, which was present in the May-June period, is not there anymore. Increasing fuel prices are much less a problem now than a few weeks ago. In July, the latter are set to rise only by 0.4% mom, which we think would be consistent with 3.2% yoy headline CPI-inflation, slightly up from 3.1% in June. For Q3 2018, the MNB is currently forecasting 3.3% average CPI-inflation. So the MNB does not look like being in bad need to do particularly anything in terms of an immediate policy change.In other words, analysts seem to believe that it may be time for the central bank to go for a summer holiday now. And we agree.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.