MNI NBH Preview - Mar'25: New Governor, Same Hawkish Stance

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Executive summary:

• The National Bank of Hungary is expected to keep its base rate on hold at 6.50% again this month, in what will be the first meeting under the helm of new Governor Mihaly Varga.
• Varga said in his first public comments as new central bank chief that he will make price stability his main priority, and given the recent surge in inflation, this means we are highly unlikely to see any material changes to the NBH’s hawkish guidance either.
• Among sell-side, no analyst view we have surveyed expect to see any change to rates this month, with many still expecting the base rate to remain on hold through the remainder of the year.