MNB Cuts O/N Collateralized Loan Rate

MNB

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The Monetary Council of the National Bank of Hungary (MNB) decided to leave the base rate on hold at 13%, but voted to cut the central bank's O/N collateralized loan rate by 100 bp to 18.5% at a monthly policy meeting on Tuesday, according to a report by state news wire MTI.

The council left the O/N deposit rate, at the bottom of the "interest rate corridor", at 12.5%.

The council had cut the O/N collateralized loan rate by 100 bp at their previous monthly policy meeting in May, too.

Quick Depo Tender Rate Cut 100 bp

In a statement released after the meeting, the council said it was also warranted to cut the interest rate on the MNB's one-day quick deposits offered at daily tenders by 100 bp to 16%.

The council had cut the rate on the deposits by 100 bp at the policy meeting in May, too.

The deposits were launched in October 2022, initially at a rate of 18%.

The council also decided to reduce the interest rate paid on optional reserves by 100 bp to 16% with effect from June 21.

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