MNB buys HUF 50 bln in QE gov't securities

MNB

Image by Jessica Fejos

The National Bank of Hungary (MNB) bought HUF 50 billion of government securities under its quantitative easing program in the week ended September 5, in line with the weekly target amount, according to data published on the central bank's website.

The 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."

In August 2021, central bank policymakers decided to start tapering and set a target amount for weekly purchases of HUF 50 bln "as a first step," but said the MNB "may depart from this arrangement in a flexible manner, depending on the supply and other market conditions."

According to the latest weekly QE data, the MNB bought HUF 29 bln of government securities at a weekly auction and HUF 21 bln outside of the auction. The total amount of government securities purchased under the scheme's framework had reached HUF 2.977 trillion on September 5.

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