Hungarian Forint: NBH Cuts to 5.75%, Signals More Easing
The National Bank of Hungary cut its base rate to 5.75% and maintained a dovish stance, indicating further easing in August and beyond. ING analysts expect the bank to keep a loose policy trajectory.
The National Bank of Hungary (MNB) lowered its key interest rate by 25 basis points to 5.75% and confirmed a dovish forward guidance, according to ING strategist Frantisek Taborsky. The move signals that additional rate cuts are likely in August and possibly later this year.
Market participants have absorbed the renewed rate-cut pricing, the note added. ING anticipates that the central bank will stick to its accommodative path, keeping the forint under pressure as the interest rate differential with other currencies narrows.
Source: FXStreet Forex News