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23 Feb 2015
NBH likely to keep rates steady tomorrow, might cut in March – KBC
FXStreet (Barcelona) - The KBC Bank Research Team expects the Hungarian central bank to keep rates steady tomorrow, and add that the chances for a 50bp rate cut in its March meeting is high.
Key Quotes
“Tomorrow, the next rate-setting meeting of the Hungarian central bank will attract most attention. We do not expect any rate change to be passed in Budapest but rather believe that the NBH will postpone the start of monetary easing cycle to its next meeting in March, when the stance of the Polish central bank will have been clear”
“Currently, the NBP is obviously divided with respect to the scope of its monetary easing. While central banker Bratkowski said today that a 50 bps rate cut would be appropriate, another member of MPC, Jan Winiecki, sees the existing policy rate of 2.0 % adequate.”
“According to our view, the first option will gain the upper hand in the end and a 50 bps cut on March 4 is highly probable.”
Key Quotes
“Tomorrow, the next rate-setting meeting of the Hungarian central bank will attract most attention. We do not expect any rate change to be passed in Budapest but rather believe that the NBH will postpone the start of monetary easing cycle to its next meeting in March, when the stance of the Polish central bank will have been clear”
“Currently, the NBP is obviously divided with respect to the scope of its monetary easing. While central banker Bratkowski said today that a 50 bps rate cut would be appropriate, another member of MPC, Jan Winiecki, sees the existing policy rate of 2.0 % adequate.”
“According to our view, the first option will gain the upper hand in the end and a 50 bps cut on March 4 is highly probable.”