1002 results for Hungary
As the US jobs market remains tight and activity holds up, we're expecting a further 25bp move from the Federal Reserve next week
We remain a bit reluctant to chase the dollar lower as the greenback remains yet to catch up with recent market dynamics
Food deflation in Hungary drags headline inflation down to near 20%
Falling domestic demand is weighing heavily on retail and industrial performance in Hungary
Faster disinflation does not necessarily mean faster rate cuts. The local story will play an increasingly important role in the second half of the year
High inflation has been a dampener for the Hungarian economy
Strong wage growth in Hungary, combined with a lowering unemployment rate, might trigger a new round of pro-inflation shock
The National Bank of Hungary continues the normalisation with 100bp cut in the effective rate
Rate hikes in the UK, Norway and Switzerland this week should help keep the strong dollar in check
Based on developments since the last meeting, we see the stars aligning for the rate cutting cycle to continue
