Hungarian Forint Dovish Inflation Path Supports More Cuts – ING
ING analyst František Táborský notes Hungary's inflation dropped to 1.7%, below both market and NBH forecasts, paving the way for further rate cuts in July and August.
Hungary's inflation has fallen to 1.7%, coming in below both market expectations and the National Bank of Hungary's (NBH) own projections, according to ING analyst František Táborský. This dovish inflation path reinforces expectations for additional monetary easing.
Markets are currently pricing in around 150 basis points of rate cuts, with a terminal rate of 4.50%. The analyst sees scope for further easing beyond the already anticipated moves in July and August.
The forint may face continued pressure as the central bank maintains an accommodative stance amid subdued price pressures.
Source: FXStreet Forex News