The stock of forex-liquidity swaps of the National Bank of Hungary (NBH) remained unchanged at HUF1,988bn after the regular weekly tender held on Monday, according to an official press release. The NBH provided HUF25bn of one-, three-, six-, and twelve-month swaps each, which is equal to the amount of swaps expiring on Mar 20. The swap results appear to be largely neutral in terms of the outlook on the monetary policy stance but we still believe that the NBH is likely to start the monetary policy normalization through the forex swap stock as a first step. The MPC has said it would assess economic outlook on grounds of March inflation report.
The stock of forex-liquidity swaps will include HUF114bn of one-month, HUF274bn of three-month, HUF773bn of six-month and HUF827bn of twelve-month swaps after the latest tender.