ING: Hungarian inflation below forecasts supports further rate cuts
ING analyst highlights Hungarian inflation at 1.7% below market and NBH forecasts, cementing rate cuts in July and August with markets pricing 150bp of easing.
HUF
According to ING's Frantisek Taborsky, Hungarian inflation has fallen to 1.7%, undershooting both market expectations and the National Bank of Hungary's (NBH) own forecasts. This dovish inflation path reinforces the case for additional interest rate cuts in July and August.
Markets are currently pricing in approximately 150 basis points of easing, with a terminal rate seen at 4.50%. The lower-than-expected inflation data strengthens the outlook for further monetary loosening, which could weigh on the forint.
Source: FXStreet Forex News