The Council also left the O/N central bank deposit rate at -0.15% and the O/N collateralized loan rate at 0.90% on Tuesday, reported state news agency MTI.
“In the Council’s assessment, maintaining the base rate and the loose monetary conditions at both short and long ends for an extended period is necessary to achieve the inflation target in a sustainable manner,” the rate-setters reiterated in a statement released after the meeting.
“The Council will closely monitor developments in monetary conditions and will ensure the persistence of loose monetary conditions over a prolonged period by using the extended set of monetary policy instruments,” the statement added. Rate-setters have lately made use of “unconventional, targeted” instruments to ease monetary policy further.
Commenting on the newest of these policy instruments intended to flatten the yield curve, the Council said the MNB would continue mortgage bond purchases and its monetary policy interest rate swap (MIRS) facility as programs “continuously and for a prolonged period,” describing them as “an integral part of the set of monetary policy instruments.”
“The Monetary Council focuses on the relative position of domestic long-term yields relative to international yields when evaluating the program,” the rate-setters noted, while pointing out that domestic long-term yields have “fallen significantly overall in the past months” and that spreads relative to eurozone and regional yields have “significantly narrowed.”
The condensed minutes of Tuesdayʼs meeting will be published at 2 p.m. on Wednesday, February 14.
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.
