The O/N collateralized loan rate, which marks the top of the MNB's "interest rate corridor," stands at 25% at present. The O/N deposit rate, at the bottom of the corridor, is 12.5%.
The base rate is 13%, but the MNB pays 18% on O/N deposits it offers at daily quick tenders.
Virág said that MNB policymakers had established an "extremely wide" rate corridor, in addition to raising the rate of the O/N deposits offered at daily quick tenders, in October.
While those decisions were taken in response to "extraordinary conditions," international investor sentiment has "improved much" since then, he added.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
