Regional markets stay in a calm mode as the Hungarian fixed-income continue to digest a new NBH plan, while it awaits tomorrow’s interest-rate setting meeting. Recall that the transformation of the 2-week NBH bills to 2-week deposit will exclude foreign investors. Only who undertake to extend credit in the Hungarian economy and play role in the Hungarian job preservation are eligible to participate in it. As NBH president Matolcsy stated the 2-week deposit has to be cut to HUF 3600bn from 4500bn. However, the latest non-standard measure might bring some setback as according EU sources said the plan of György Matolcsy may infringe the EU’s fundamental rule on the free movement of capital.
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