MNB Allots HUF 2.135 tln of 2-month Deposits 

Banking

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The National Bank of Hungary (MNB) allotted HUF 2.135 trillion of variable-rate two-month deposits at a tender on Wednesday, according to a report by state news wire MTI.

The central bank accepted HUF 1.618 tln of the HUF 2.289 tln of bids in the competitive phase of the tender and all of the HUF 517 bln of bids in the non-competitive phase. The weighted average spread over the 13% base rate was 4.95% in the competitive phase.

The central bank is currently paying 18% on O/N deposits at daily tenders.

MNB's Monetary Council announced the two-month deposit tender after a monthly policy meeting on November 22, using the sterilization instrument to "further increase the effectiveness of monetary policy transmission".

Policymakers signaled an end to a tightening cycle in September but have said tight monetary conditions will be maintained "over a prolonged period" with a focus on soaking up banking sector liquidity and improving monetary policy transmission.

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