HUNGARY: ING Continue to Expect No Change to Rates This Year
Apr-25 14:12
- The overall picture for the Hungarian economy has been moving in a dovish direction since the central bank's March meeting, ING say, with lower inflation, government measures and downside risks to an already weak economic outlook. However, they believe it is too early for any reversal in forward guidance.
- ING think the message is clear: rate cuts aren't on the table for the time being, and there won't be any change in forward guidance indicating otherwise. For now, at least, they believe that the possibility of a rate hike may disappear from the discussion, given that the situation on the domestic side and FX volatility have calmed recently.
- ING continue to see rates unchanged this year and have the first rate cut in their forecast for March next year. The inflation picture looks a bit better after the March number, but it is too early to change anything on the baseline scenario, ING say, although the likelihood of some rate cut late this year has increased slightly.
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