The Council left the O/N central bank deposit rate at -0.15% and the O/N collateralized loan rate at 0.90%.
“Maintaining the base rate and loose monetary conditions for an extended period are necessary to achieve the inflation target in a sustainable manner,” the Council said in a statement released after the meeting.
The Council noted that the likelihood of downside risks to inflation materializing – risks indicated earlier in the MNBʼs September Inflation Report – has increased recently.
“The Council will stand ready to ease monetary conditions further and is considering unconventional instruments to be used accordingly,” it said. “It is important for the Council to ensure that the low interest rate environment exerts its favorable effect as long as possible. To achieve this, it is necessary to reduce long-term yields and as a result the steepness of the yield curve, which will also promote the expansion of loans with long interest rate fixation,” it added.
The condensed minutes of the meeting on Tuesday will be published at 2 p.m. on November 8.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
