NBH holds it interest-rate setting Meeting today. Given the substantially weaker forint we had to rewrite our outlook for today’s outcome of MC meeting. Previously, we though that a relatively moderate August inflation figure would allow the central bank to stay on hold today. However, taking into account a new development in both domestic politics and financial markets we now believe that the Council will opt for a rate hike. Contrary to the market, we think that just a 25 bps rate hike is more likely, since the mostly dovish Monetary Council (mostly named by the current PM) will not want to act aggressively into this situation.