Central European Daily

The NBH holds rate setting meeting this afternoon. The main question recently is how long the central bank continues the rate cut cycle, which was started more than a year ago and the base rate was moderated from 7% to 3.6%. From that perspective one of the biggest questions of the following months is that how the retail sector reacts on the increasing demand as their profit margin shrank substantially in the last years. We saw in the last months, that corporate started to path through the negative effects of HUF weakening and increasing costs on the consumers, so this is an area what National Bank of Hungary may have to start to monitor very closely.