EUR/HUF and EUR/PLN would inch higher with a surprise rate cut – TDS

The NBH will meet and announce its monetary policy decision on Tuesday, 26 May while the NBP will do it on Thursday, 28 May. The base scenario for economists at TD Securities is that there will be no surprises in both cases. 

Key quotes

“We expect both Hungary and Poland to keep their powder dry by holding all policy rates and by not introducing any new unconventional measures.”

“We expect HUF and PLN to remain stable if rates stay unchanged. EUR/HUF or EUR/PLN would move higher in case of any surprise loosening of monetary policy.”