Policymakers raise base rate 50 bp to 5.9%

Banking

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The Monetary Council of the National Bank of Hungary (MNB) decided to raise the central bank base rate by 50 bp to 5.9% at a monthly policy meeting on Tuesday, according to a report by state news wire MTI.

The policymakers slowed the pace of the tightening cycle, following 100 bp hikes at the previous two monthly policy meetings.

The council also decided on Tuesday to raise the O/N deposit rate by 50 bp to 5.9% and the O/N and one-week collateralized loan rates by 50 bp to 8.9%.

The O/N deposit rate and the collateralized loan rate mark the bottom and the top, respectively, of the central bank's "interest rate corridor". The base rate is paid on mandatory reserves.

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