MNB Monetary Council keeps base rate at 0.9%
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As expected, the Monetary Council of the National Bank of Hungary (MNB) has made the decision to keep its base rate on hold at 0.9%, the lowest in its history, according to Hungarian news agency MTI. The key rate has been kept intact since the central bank signaled the end to an easing cycle last May.
At the same time, MTI noted, rate-setters have made use of "unconventional, targeted" instruments to ease monetary policy further, such as placing a limit on the central bankʼs main instrument for sterilizing liquidity as well as modifying the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates.
At the meeting on Tuesday, the Monetary Council left the interest rate corridor unchanged, with the O/N collateralized loan rate at 0.90% and the O/N central bank deposit rate at -0.05%, MTI added.
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