HUF: Cutting cycle expected to start – ING
|The National Bank of Hungary is expected to maintain rates at 6.50% in its upcoming meeting, with a potential rate cut anticipated in February. Analysts at ING note that the market sees a 60/40 chance in favor of a rate cut, influenced by January inflation data. They expect EUR/HUF to stabilize around 385 as the market prepares for dovish pricing.
Focus on forward guidance from NBH
"Today's meeting of the National Bank of Hungary should be a non-event from a rates perspective. No change at 6.50% is widely expected, but the meeting should be the last one, in our view, before the central bank starts cutting rates in February."
"The market has unwound dovish bets after December's inflation and at this point sees February as a 60/40 chance in favour of a rate cut and two 25bp steps for the next four meetings."
"Therefore, we see EUR/HUF around 385."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.