Key events in EMEA and Latam next week

In Hungary, the highlight of the week will be the National Bank of Hungary’s rate setting meeting. We expect the central bank to remain conservative, maintaining its wait-and-see approach, especially considering its elevated inflation forecast for 2021. In all, this meeting should be a non-event when it comes to monetary policy action and forward guidance. Data wise, the labour market figures could shed some light on the knock-on effects of the second wave of Covid-19. We expect the December unemployment rate to jump, but this will hardly impact the three-month average. Due to an expected cut in one-off premiums and bonuses at year-end, we see average wage growth slowing significantly, retreating to a pace last seen around 2016.