EUR/HUF to dip below 370 thanks to NBH support – ING

Hungarian National Bank meets today. A hawkish central bank is set to help HUF below 370 against EUR, economists at ING report.

Hawkish hike to give further support to forint

“We expect a hawkish 100bps hike in the base rate followed by a 50bp hike in the 1-week deposit rate on Thursday in line with consensus.”

“We are expecting average inflation of around 9% for this year. In the last two days, the market has lifted pricing up again but we still see room, especially in the six to nine month horizon, to move market expectations closer to our terminal rate in the range of 8.00-8.25%.” 

“We expect a hawkish outcome of today's meeting, which we think should push Hungary's forint back below 370 per euro.”