ADVERTISEMENT

MNB Cuts O/N Collateralized Loan Rate

MNB

Photo by Adriana Iacob/Shutterstock.com

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.

Gránit Bank to Offer Cross-border Services in Romania Banking

Gránit Bank to Offer Cross-border Services in Romania

EC Acknowledges Reforms, Notes Concerns in Rule of Law Repor... EU

EC Acknowledges Reforms, Notes Concerns in Rule of Law Repor...

Budapest Housing Market Grew Spectacularly in H1 Residential

Budapest Housing Market Grew Spectacularly in H1

CATL Debrecen Becomes Sponsor of Campus Festival In Hungary

CATL Debrecen Becomes Sponsor of Campus Festival

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.