MNB raises 1-week depo rate by 20 bp to 3.3%
Photo by Adriana Iacob/Shutterstock.com
The National Bank of Hungary (MNB) announced a rate of 3.3% for its one-week deposit facility ahead of a tender on Thursday, 120 bp over the base rate, according to a report by state news wire MTI.
The central bank raised the one-week depo rate by 20 bp from the tender a week earlier.
The one-week depo rate has moved in tandem with the base rate since late June, but the central bank's Monetary Council said at a monthly policy meeting in November that MNB "must be ready to set the interest rate on the one-week deposit above the base rate", allowing it to respond to a recent increase in short-term risks in financial and commodity markets "quickly and flexibly".
MNB deputy-governor Barnabás Virág said in an interview published earlier in the week that policy makers' decisions to raise the one-week depo rate over the base rate would become a "lasting element" of the central bank's tightening cycle. He added that the top of the interest rate corridor - 4.1% at present - is the "upper limit" for the one-week depo rate.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 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.