EM’s central banks in the limelight – BBH

The research team at BBH has noted the upcoming activity in the EM space.

Key Quotes

Hungarian central bank meets Tuesday and is expected to cut rates 15 bp to 1.05%. The real economy remains fairly robust. However, deflation has returned with CPI at -0.2% y/y in March and well below the 2-4% target range. Further rate cuts are seen in the coming months, and other unconventional measures are possible too”.

Russian central bank meets Friday and is expected to keep rates steady at 11.0%. However, a minority of analysts expect a 50 bp cut to 10.50%. It has been on hold at 11.0% since its last 50 bp cut in July 2015. Inflation fell to 7.3% y/y in March, the lowest since April 2014 but still above the 4% target. Comments from Governor Nabiullina support easing ahead, but also suggests that more time is needed before she feels comfortable easing again”.

EUR/GBP hits fresh session highs near 0.7810 post-Ifo

The EUR/GBP cross keeps the bid tone intact following the release of the German Ifo surveys, which showed a slight deterioration in the business sentiment.
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