Hungary: No fireworks expected from MNB today – Nomura

Analysts at Nomura suggest that after the Magyar Nemzeti Bank (MNB) monetary policy council set out a roadmap for policy normalisation in September, Nomura expect the October meeting to bring little new to the picture.

Key Quotes

“Higher-than-expected inflation last month will likely add to the council’s cautious stance. Nonetheless, core inflation was stable at 2.4% y-o-y, safely below the MNB’s 3% target. As we expect a significant pick-up in domestically driven price pressures in early 2019, we continue to expect a gradual tightening process to begin in March next year.”