MNB launched the QE program in the spring of 2020 "to prevent damage…to monetary policy transmission and manage economic and financial risks arising from the coronavirus pandemic". Rate-setters decided to start tapering last August and announced a decision to cease the program after a monthly policy meeting on December 14.
The central bank bought HUF 10 bln of bonds at the last weekly QE government bond auction on December 14. It also purchased HUF 1 bln of securities with a government guarantee: a 2029 bond issued by the Hungarian Development Bank (MFB).
The total amount of government securities purchased in the framework of the scheme reached HUF 3.494 trillion. Purchases of securities with government guarantees came to HUF 154.2 bln.
MNB will keep the securities purchased in the QE program on its balance sheet until maturity.
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