HU: The third pause in a row

Today, the policy rate remained unchanged at 6.50%. Additionally, the Monetary Council kept both the O/N deposit rate and the O/N lending rate stable at 5.50% and 7.50%, respectively. Todays decision was in line with the broad market consensus and our estimate. Weakness of the forint coupled with upside risks on inflation implied a pause in the easing cycle again.

As usual, the statement of the monetary council will be released at 3 p.m. and Deputy Governor Virag will also hold a press conference at that time on the background of todays decision. We will publish another Instant Comment on the details.