The CPI inflation of Hungary surprised markets and posted 0.5% y/y increase in November against 0.1% in the previous month. Month-on-month headline and core CPI almost remained flat. The core CPI inched down to 1.4% yoy from 1.5%.

"We expect MNB to cut rates and implement QE during H1/2016, which will likely push up EUR-HUF towards 320.00 over the coming quarters", says Commerzbank in a research note on Wednesday.