HUF: Focus on MIRS pricing in the NBH meets today - ING

The NBH will meet to set interest rates today and the key issue for Hungarian asset markets is whether the NBH is going to react to market turmoil or whether they will keep the same fixed-rate for the MIRS tenders (which won’t be announced till Thu), according to Viraj Patel, Research Analyst at ING.

Key Quotes

“Our preferred view is that the NBH will prioritise anchoring rates and won’t change the price. On the FX front, we retain the view EUR/HUF will trade around 310 and that HUF won’t be hit by the influx of liquidity from the mortgage bond QE programme. The 300 level is a story for later in the year, notably when the NBH’s curve flattening policies end.”