The National Bank of Hungary’s Monetary Council is likely to raise rates at a meeting on Tuesday, according to a poll of analysts by Reuters.
In the poll of 21 analysts on Friday, a day after Moody’s cut Hungary’s sovereign rating to "junk", seven projected a 50bp hike. Four expected a 25bp tightening, another four a 100bp rise and one forecast the bank would add a full 200bp to the base rate. Five forecast that the bank would keep rates on hold.
In the two days preceding Moody’s rating action, half of 16 analysts polled had forecast no change, and most of the other half only saw a quarter-point hike.
The Monetary Council left the base rate on hold for the ninth month in a row at a meeting in October.