20 Jul 2015
NBH to cut rates by 10 bp – BBH
FXStreet (Edinburgh) - The research team at BBH believes the Hungarian central bank could lower rates by 10 bp tomorrow.
Key Quotes
“A small handful of analysts look for a 15 bp cut to 1.35%”.
“Central bank minutes from the June meeting showed a 8-0 vote to cut rates 15 bp to 1.50%, but one MPC member wanted to end the easing cycle right then”.
“All 8 also voted to change the forward guidance to further "slight" easing”.
“We think after this meeting, there will be a pause”.
“The real sector data have been quite robust, so the need for more cuts is limited”.
“CPI rose 0.6% y/y in June, the highest rate since November 2013. Low base effects should see the y/y rate explode in H2, and it could approach the 3% target”.
Key Quotes
“A small handful of analysts look for a 15 bp cut to 1.35%”.
“Central bank minutes from the June meeting showed a 8-0 vote to cut rates 15 bp to 1.50%, but one MPC member wanted to end the easing cycle right then”.
“All 8 also voted to change the forward guidance to further "slight" easing”.
“We think after this meeting, there will be a pause”.
“The real sector data have been quite robust, so the need for more cuts is limited”.
“CPI rose 0.6% y/y in June, the highest rate since November 2013. Low base effects should see the y/y rate explode in H2, and it could approach the 3% target”.