MNB keeps base rate on hold, as expected
Photo by Jessica Fejos
As expected, the Monetary Council of the National Bank of Hungary (MNB) decided to keep the central bankʼs key rate on hold at 0.90% at its meeting on Tuesday, according to state news wire MTI.
The Monetary Council has left the base rate on hold since signalling an end to an easing cycle at a policy meeting last May. However, rate-setters have made use of "unconventional, targeted" instruments to ease monetary policy further, such as placing a limit on the central bankʼs main instrument for sterilizing liquidity as well as modifying the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates.
At the meeting on Tuesday, the council left the interest rate corridor unchanged, with the O/N collateralized loan rate at 0.90% and the O/N central bank deposit rate at -0.05%.
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