MNB set to reduce three-month depo stock
Image by Jessica Fejos
The National Bank of Hungary (MNB) has capped the amount of placements in its three-month deposit at a tender on Wednesday at HUF 125 billion, HUF 150 bln less than the deposits maturing in the facility, the tender invitation on the bankʼs website shows.
After the tender, the three-month depo stock will be reduced from HUF 450 bln to HUF 300 bln, at most. The MNBʼs Monetary Council said earlier that the stock of three-month deposits, the central bankʼs main sterilization instrument, would fall to HUF 300 bln by the end of the third quarter, national news agency MTI reports.
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.