Dávid Szőnyi’s Post

Favourable domestic developments strengthen the case for a larger rate cut, while FX stability warrants a more cautious approach. If market stability prevails, we expect the National Bank of Hungary to embrace the present and deliver a 100bp cut.

The forint has been remarkably strong since the central bank’s last decision, so both market stability and macro fundamentals would, in our view, justify maintaining the previous pace of rate cuts. We therefore see a 50bp cut in May.

Norway keeps rates on hold, may extend tight policy Full Article Link >>> https://lnkd.in/gnrd7nGs OSLO: Norway ‘s central bank kept interest rates on hold at 4.50% on Friday, as unanimously expected by analysts, and said a tight monetary policy stance may be needed for somewhat longer than planned to curb inflation . The central bank said in March that it could start cutting rates in September from the current […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

Weekly #marketwatch insights ℹ Stubborn UK inflation prompts Bank of England to take bold action. ℹFed Chair expects further interest rate hikes as inflation remains persistently elevated. ℹSwiss National Bank lifts key interest rates a quarter point, says more increases may be necessary.  ℹBoJ retains ultra-loose monetary policy.

Polish central bank sticks to cautious stance and keeps rates stable Full Article Link >>> https://lnkd.in/dvGtWTDy WARSAW: Poland’s central bank stuck to its wait-and-see approach on interest rates on Thursday, leaving the cost of credit at 5.75% for the seventh month in row as it looks ahead to what economists say will be rising inflation in the coming months. At 2.4%, Poland’s April flash CPI reading was within the central bank’s […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

Riksbank Kicks Off Easing With First Rate Cut Since 2016 https://lnkd.in/gidDu4_x • Policymakers are acting a month before the ECB may move too The Riksbank cut its benchmark interest rate for the first time in eight years, acting before the neighboring euro zone in a bid to offer respite to Sweden’s recession-stricken economy. The central bank in Stockholm lowered its policy rate by a quarter point to 3.75% and said it could be reduced twice more in the second half of the year, according to a statement on Wednesday. The move makes the Swedish central bank the second among advanced-world peers after the Swiss National Bank to embark on post-pandemic easing.

Norway keeps rates on hold, may extend tight policy Full Article Link >>> https://lnkd.in/gPQrKPC6 OSLO: Norway ‘s central bank kept interest rates on hold at 4.50% on Friday, as unanimously expected by analysts, and said a tight monetary policy stance may be needed for somewhat longer than planned to curb inflation . The central bank said in March that it could start cutting rates in September from the current […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

Peak effect of key rate increases expected in Q2 2024 — Bank of Russia Earlier on Friday, the Bank of Russia once again decided to maintain the key rate at 16% per annum at its second meeting in 2024 MOSCOW/ The peak effect of key rate increases will happen in the Q2 of 2024, Governor of the Bank of Russia Elvira Nabiullina said at a press conference. "For the full implementation of the effects of monetary policy, monetary policy decisions, the transmission mechanism, as we say, takes three quarters - maybe up to a year and a half. We expect that the peak will come from the key rate increases last year, in the second quarter of this year," Nabiullina said. Earlier on Friday, the Bank of Russia once again decided to maintain the key rate at 16% per annum at its second meeting in 2024. "On 22 March 2024, the Bank of Russia Board of Directors decided to keep the key rate at 16.00% per annum. Current inflationary pressures are gradually easing but remain high. Domestic demand is still outstripping the capabilities to expand the production of goods and services. Labor market tightness has increased again. For the moment, it is premature to judge the pace of future disinflationary trends. The Bank of Russia’s monetary policy is set to solidify disinflation processes unfolding in the national economy," the statement said. The Bank of Russia Board of Directors will hold its next key rate review meeting on April 26, 2024. #business #finance #financialservices

The National Bank of Hungary erred on the side of caution with a 75bp cut, slowing the pace of easing in March. The forward guidance is as hawkish as expected, pointing to a further slowdown in the rate-cutting cycle during the second quarter. We still see the terminal rate at 6.5%.

Hungarian central bank close to ending easing cycle after 50bp cut in base rate to 7.25% #bne #bneEditorsPicks #bneChart #Hungary #monetarypolicy #macro The Monetary Council of the National Bank (MNB) reduced the base rate by 50bp to 7.25% at its monthly rate-setting meeting on May 21, in line with forecasts and level with the rate cut a month earlier. The MNB began its easing cycle a year ago from 18%, but it is nearing its end. Inflation is expected to pick up in the coming months after a steep disinflationary period from 25.7% in January 2023 to 3.7% in April 2023, and geopolitical tensions, along with the volatility of international investor sentiment, also justify a cautious monetary policy.