Hungary: No fireworks expected today - Nomura

This week’s MNB meeting is unlikely to bring anything new to light, according to analysts at Nomura.

Key Quotes

“We think the central bank’s commitment to inflation targeting will be reiterated, underscoring that the abandonment of its loose policy would likely be triggered when consumer price growth becomes a source of concern for policymakers. For now, inflation does not seem to be much of an issue for the MNB.”

“Consequently, we think the central bank will abandon its policy only in mid-2019 when core inflation is likely to approach 4%, i.e., the upper-end of the central bank’s inflation target range.”