Banks place HUF 25 bln in 3-month MNB deposits
Image by Jessica Fejos
The National Bank of Hungary (MNB) accepted HUF 25 billion of placements in its three-month deposits for banks at a tender on Wednesday, the same as the announced limit. With maturing deposits, the three-month deposit stock was reduced from HUF 275 bln to HUF 175 bln, state news wire MTI reported.
Banks bid to place HUF 132.3 bln in the facility, the central bankʼs main liquidity sterilization instrument, compared to HUF 125 bln in maturing three-month deposits.
The MNBʼs Monetary Council reduced the cap on the stock of three-month deposits to HUF 75 bln for the end of the fourth quarter at a policy meeting in September.
Central bank policy-makers have gradually reduced the three-month depo stock since last autumn by setting end-of-quarter caps. The measure is one of several "unconventional" policy moves to support monetary easing while keeping the base rate unchanged.
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