MNB raised lenders' mandatory reserve ratio to 5% from 1% from October 1. The central bank also launched regular auctions of discount bills and tenders for variable-rate deposits early in the month in an effort to soak up banking sector liquidity. In the middle of October – as the forint reached historical lows – MNB suspended regular auctions and tenders for the two instruments, along with tenders for its one-week deposit facility, and launched daily tenders for fixed-rate O/N deposits, at a rate of 18%, well over the 13% base rate.

The monthly data released on Tuesday show average stock of the variable-rate deposits – for which two tenders were held – reached HUF 2.066 trillion in October.

With the suspension of the one-week deposit tender, average stock of the instrument fell by HUF 6.833 tln to HUF 2.279 tln, while O/N deposit stock rose by HUF 857 bln to HUF 2.044 tln.

The new reserve ratio lifted average reserves to HUF 2.89 tln in October – HUF 163 bln over the requirement – from HUF 408 bln in September.

The data show average stock of currency in circulation edged down HUF 4 bln to HUF 8.322 tln in October.