Hungary central bank leaves rates unchanged

September 18, 2018 Share Print 0

As expected, the Hungarian Central Bank (MNB) left their base rate unchanged at +0.9% this morning.

It’s the 28th consecutive pause for the base rate in the current easing cycle.

Also, policy makers left the overnight deposit rate at -0.15%, as expected.

Yesterday, Hungary’s 10-year government bond yields rallied to its highest level since early July amid expectations that the central bank could tweak a swap tool that encourages banks to buy long-term bonds. 10’s backed up to +3.64%.

Inflation ran at +3.4% in August, above the mid-point of the bank’s +2-4% target range. Don’t expect the MNB to get worried unless the forint weakens significantly, lifting import prices.

The forint is trading up +0.28% at €324.00.

Governor Matolcsy is to hold his post-rate decision statement at 09:00 EDT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Dean Popplewell

Vice-President of Market Analysis at MarketPulse

Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.