Q3 real GDP figures to decide Hungary's MNB’s monetary policy

Industrial production in Hungary posted a solid growth of 12.7% y/y WDA in October 2015. Market expected the output to expand at the rate of 7.8%.

Similarly, consumer price inflation also showed upward trend as it is increased by 0.5% y/y in November against 0.1% in the previous month. The main contributors to the upward trend are food, alcohol and tobacco, and consumer durables prices. The food prices are increased by 1.9%, alcohol and tobacco prices by 3.7%, and consumer durables prices by 2.0%.

The industrial output growth remained solid for October with a below target level inflation. If the Q3 real GDP growth figures follow industrial output, then MNB may continue its current monetary policy, says Barclays.