24 Jun 2014
Hungary's central bank cuts rates - TD Securities
FXStreet (Łódź) - Cristian Maggio, Head of Emerging Markets Research at TD Securities comments on the NBH's decision to reduce the base rate by 10bp to 2.30%, in line with forecasts.
Key quotes
"The HUF has remained stable at around 305.75 to the euro after the announcement."
"IRS have adjusted marginally lower at 2.38% (1yr) from 2.41% yesterday, and to 3.04% (5yr) from 3.12%, causing 1y5y to flatten 5bp to 66bp, rather than steepening as we would have expected."
"The reason for this move seems to be related to soft expectations on inflation rather than today’s cut that was, as said, already priced in."
Key quotes
"The HUF has remained stable at around 305.75 to the euro after the announcement."
"IRS have adjusted marginally lower at 2.38% (1yr) from 2.41% yesterday, and to 3.04% (5yr) from 3.12%, causing 1y5y to flatten 5bp to 66bp, rather than steepening as we would have expected."
"The reason for this move seems to be related to soft expectations on inflation rather than today’s cut that was, as said, already priced in."