National Bank of Hungary likely to keep interest rate on hold in January

The National Bank of Hungary is set to meet tomorrow for interest rate decision. According to a KBC Market Research report, the Hungarian central bank is likely to keep the overnight deposit rate on hold at -0.5.

The NBH is likely to confirm their statement that the inflation risks are balanced on the downside and upside, which needs a wait and see approach.

“We also expect that the NBH may try to influence the exchange rate in short term rather with the change of foreign currency swaps tenders on Monday's. In case the HUF is weakening too much they may not renew the full redemption of FC swaps (via they decrease the HUF liquidity on the market)”, added KBC Market Research.