Hungary: MC to keep all its rates on hold - TDS

According to analysts at TD Securities, there is little doubt that the Hungary’s Monetary Council (MC) will keep all its rates on hold at today's meeting.

Key Quotes

“Also we think that the MC will maintain its current loose monetary policy stance, but may ramp up its guidance concerning the eventual end of this policy. September CPI inflation surprised on the upside, coming out at 3.6% Y/Y, ahead of the consensus of 3.5% and up from the prior of 3.4%.”

“The main contributor to the move higher in the Y/Y rate was Food inflation and the NBH will draw some comfort from the fact that core inflation has been more subdued, running at 2.4% Y/Y in September, up from the prior 2.3%, but staying more or less around the same level where it has been all this year. So we do not think that the MC will revise its inflation expectations significantly, even though headline inflation has moved further above the 3% target.”