MNB Announces Launch Dates for Deposit Tender, Discount Bill Auction
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The National Bank of Hungary (MNB) on Tuesday announced launch dates for a variable-rate deposit tender and a regular auction of discount bills, according to a report by state news wire MTI.
The instruments aim to soak up banking sector liquidity, supporting tight monetary conditions.
MNB policymakers wound up a tightening cycle with a 125 bp rate hike in September, but said tight monetary conditions will be maintained "over a prolonged period" with a focus on sterilizing liquidity and improving monetary policy transmission.
On Tuesday, MNB said the first variable-rate liquidity-absorbing deposit tender will take place on Wednesday, October 5, while the first regular discount bill auction will be held on Thursday, October 6.
At the tender on Wednesday, MNB will announce a two-month deposit. The central bank may also decide to call a non-competitive phase.
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