NBH expected to remain on hold today – TDS

Annette Beacher, Macro Strategist at TD Securities, expects the Hungarian central bank (NBH) to keep its monetary stance unchanged at today’s meeting.

Key Quotes

“In line with the unanimous consensus, we expect the NBH to keep its policy rate, the 3m deposit rate, on hold at 0.9%”.

“At the September rate meeting, the MPC set a year-end HUF900bn upper limit on the use of the CB 3m deposit facility”.

“For the time being the NBH seems to regard limiting the stock of 3m deposits as its preferred instrument of choice for easing monetary conditions if needs be”.

“The MPC has stated that they intend to review the limit on a quarterly basis, although the possibility of earlier action cannot be ruled out”.