The National Bank of Hungary is in a bind. On the one hand, growth remains pretty sluggish. But on the other, the high level of Swiss franc-denominated household debt limits the scope for, and the impact of, any cut in interest rates. We think that policymakers will still seek to lower interest rates in 2012, although due consideration of the impact on the exchange rate may limit any easing to 50bps or so.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.