Gold prices steady ahead of Fed decision, Trump’s tariff deadline
Investing.com -- The National Bank of Hungary (NBH) is expected to keep its interest rate unchanged at 6.50% during its upcoming meeting on July 22, according to Bank of America.
Market pricing indicates no change for the meeting, aligning with BofA economist Mai Doan’s forecast that the central bank will maintain its current rate.
Despite Hungary experiencing weaker economic growth, which has been negatively affected by investments and net exports, and lower inflation primarily resulting from government price control measures, the central bank is likely to remain cautious about implementing any stimulus plans.
The decision to hold rates steady comes amid significant uncertainties both domestically and internationally. On the domestic front, Hungary faces uncertainties related to wages, price control measures, and politics. External factors contributing to the cautious stance include global risk appetite, geopolitical tensions, and energy concerns.
These combined uncertainties make interest rate cuts unlikely to be the base case scenario for the Hungarian central bank at this time.
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