23 Mar 2015
EM central bank decisions ahead in the week – TDS
FXStreet (Edinburgh) - Strategists at TD Securities reviewed this week’s central banks’ meetings in the EM space.
Key Quotes
“The National Bank of Hungary (NBH) is to announce rates on Tuesday, and we expect the NBH to cuts its policy rate by 20bps to 1.9%, resuming easing after rates were cut the last time in July 2014”.
“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 30bps of further cuts (20bps + 10bps), bringing the easing cycle to an end”.
“On Thursday, we expect both Mexico’s Banxico and South Africa’s SARB to stay put at 3.00% and 5.75%, respectively, which is in line with consensus expectations”.
Key Quotes
“The National Bank of Hungary (NBH) is to announce rates on Tuesday, and we expect the NBH to cuts its policy rate by 20bps to 1.9%, resuming easing after rates were cut the last time in July 2014”.
“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 30bps of further cuts (20bps + 10bps), bringing the easing cycle to an end”.
“On Thursday, we expect both Mexico’s Banxico and South Africa’s SARB to stay put at 3.00% and 5.75%, respectively, which is in line with consensus expectations”.