Hungary to stay ‘on hold’ this week – BBH

Analysts at BBH expect the Hungarian and Korean central banks to keep their monetary status quo unchanged later this week.

Key Quotes

“Bank of Korea meets Tuesday and is expected to keep rates steady at 1.5%.  CPI rose only 1.0% y/y in January, well below the 2% target.  February trade data will be reported Thursday.  Export are expected to rise 0.8% y/y, but will be distorted from the timing of the Lunar New Year.  January IP will be reported Friday, which is expected to rise 1.8% y/y vs. -6% y/y in December”. 

“National Bank of Hungary meets Tuesday and is expected to keep rates steady at 0.90%.  CPI rose only 2.1% y/y in January, right near the bottom of the 2-4% target range.  As such, there is some risk that the bank adds more stimulus via unconventional measures”.