Quotes from Commerzbank Corporates & Markets:
-HUF: We expect NBH to leave rates unchanged today. But, we expect rates to be cut beginning March when new inflation projections are ready; by end-year, we expect rates to be 60bps lower than now.
-1) CB Governor Matolcsy has clearly signalled the upcoming easing cycle by saying that the bank has switched to its lower "alternative scenario" for EU inflation. 2) What is more, the much awaited FX loan conversion has been completed in February, which means that policymakers now have greater tolerance for weaker HUF.
-Now the wait is for new official lower inflation forecasts. The prospect of future rate cuts and more official tolerance for a weaker HUF mean lower HUF-levels in the medium term, We forecast EUR-HUF to move up to 315.00 by mid-2015.
