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Hungary Interest Rate Announcement (Jan.)

The Hungarian central bank’s communications following its meeting today confirm that the decision not to accelerate the pace of its easing cycle was due to the recent ratcheting up of tensions between the government and the EU. Even if these tensions ease, we think the scope for monetary easing this year is a bit more limited than most seem to appreciate.

This publication has been updated with additional analysis since the post-meeting press statement and press conference.

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