MNI NBH Review - Mar'25: Hawkish Continuity

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Executive summary:

• The National Bank of Hungary unanimously decided to keep its base rate unchanged at 6.50% at the first meeting under the leadership of Governor Mihaly Varga.
• Communication in both the policy statement and press conference remained hawkish, as was expected, with Varga signalling that rates can remain on hold for a sustained period.
• Among sell-side, analysts generally expect there to be limited room for easing through the remainder of the year, but high levels of uncertainty are well-noted.