The NBH is expected to cut rates by 25 bp – TDS

FXStreet (Edinburgh) - According to Strategist Paul Fage at TD Securities, the Hungarian central bank (NBH) would lower its benchmark rate to 1.9%.

Key Quotes

“In line with the consensus, we expect the National Bank of Hungary (NBH) to cuts its policy rate by 20 bps to 1.9% tomorrow”.

“Although growth data remains robust, continuing deflation means there is a risk that the NBH fails to reach its 3% inflation target in the medium term unless rates are cut”.

“We expect tomorrow’s cut to be followed by 30 bps of further cuts, bringing the easing cycle to an end”.