Hints and tips:
...The NBH spokesperson said in a statement that “the National Bank of Hungary strongly denies that the Governor of the central bank or any member of his family has any ownership relationship with Hungarian...
...Mr Krpata also said the 330-per-euro level for the forint is “no longer a line in the sand” for the NBH that would push the central bank to defend the currency through tighter monetary policies....
...They wrote in a note: The NBH seems to be determined to keep monetary policy loose and should look through rising domestic inflation (Jan CPI at 2.3%YoY)....
...The NBH said it sees the limit as “an integral part of monetary policy instruments.”...
...Frank Cahouet, the NBH chairman, was a banking veteran who had ties with McKinsey going back decades, first as a client during the restructuring of Mellon Bank, and later through hiring one of its partners...
...The FX conversion (between NBH and Hungarian banks) already happened at much lower CHFHUF levels. CHFHUF was fixed at 256.6. The cross is now at 314....
...Compensation banks must pay to consumers for unfair changes to loan contracts (good for consumers, bad for the banks) was estimated by the NBH at HUF 700-900bn (€2.3-2.9bn)....
...Recent NBH action has cut the price of credit through policy rate reductions and addressed supply side issues through the Funding for Growth programme. This has still not kick started lending....
...rise as the impact of a recent series of government mandated cuts in household utility bills unwinds, large amounts of spare capacity in the economy mean that the headline rate is unlikely to breach the NBH...
...First, the NBH published new inflation forecasts today, which included an upward revision to its 2015 projection to 3.0% from 2.8%....
...Once the management has changed, the NBH is likely concentrate on measures to stimulate more lending to the private sector....
...The chances of an adequate response seem limited given the changes about to take place at the top of the central bank....
...He wrote: In the short term if the HUF further weakens I think the NBH will intervene, selling FX to defend the currency and allow a big upfront rate cut....
...Longer-term we remain concerned that the NBH might deliver too many cuts while the background picture remains challenging....
...Luis Costa of Citigroup writes: It is all about guessing when the NBH will step in the FX. Alarm bells may sound higher above 310-312....
...Given the expectation that the FTT will not apply to the NBH and other factors, this produces a shortfall of about HUF150bn....
...By Christian Keller of Barclays Capital The central banks of Turkey (CBT) and Hungary (NBH) both left their policy rates unchanged on Tuesday – the CBT at 5.75 per cent and the NBH at 6.00 per cent - as...
...Timothy Ash, at RBS in London, also voiced concerns about an inadequate response by the council: “I had thought that the NBH might err more towards caution and only go for 25 basis points....
...central bank worries threaten its independence....
...Even then, the government could opt to raise HUF financing first (if possible) and exchange it off-market at the NBH [the central bank]....
...The key point in my mind is that the market, NBH and rating agencies, and I would wager even the IMF, want strings attached. As Ash says the key issue isn’t the macro-economic situation....
...Indeed, it is unlikely that this report from the Budapest Business Journal is a coincidence: The National Bank of Hungary (NBH) received and accepted €75 million bids for three-month floating rate EUR/HUF...
...The NBH said the scrapping of the band, in which the forint was allowed to fluctuate by 15 per cent around a central parity rate of Ft282.36 against the euro, would help bring inflation down to its target...
..., the central bank....
...At Ft247.25 the forint is not far from its upper limit, and no one in the market fancies taking on the central bank, the NBH....
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