1002 results for Hungary
Soft news out of China and central bankers pushing back against rate cuts can keep the dollar supported
Despite the downside surprise, we expect the NBH to stick to a 75bp rate cut
We suspect that weaker external demand was the reason for the big negative surprise
Carry trade strategies are in demand as investors await the next big cue from US data
Retail sales are clearly improving in Hungary, but the pace will be gradual
The base rate was cut by 75bp as expected, but the forward guidance got an upgrade
We see a continuation of Hungary's 75bp rate cut cycle while the Central Bank of Turkey is forecast to raise rates by 250bp at its next meeting
By Peter Virovacz
We expect the National Bank of Hungary to continue its easing cycle amidst improving internal factors
Both retail sales and industrial production still suffer from the lack of domestic demand
Based on the first three quarters, 2023 will be a lost year. However, it will help to build a strong year next year
