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MNB leaves 1-week depo rate unchanged

MNB

Photo by Adriana Iacob/Shutterstock.com

The National Bank of Hungary (MNB) left the rate for its one-week deposit facility unchanged at 4.3% ahead of a tender on Thursday, according to a report by state news wire MTI.

After a monthly policy meeting in January, MNB deputy-governor Barnabás Virág said the central bank aims to change the one-week deposit rate once a month but stands ready to use the instrument "flexibly" and could modify it more frequently, if necessary.

The rate was last raised on January 27, after being at 4% for four weeks.

Virág also said the base rate and the one-week deposit rate "could converge in the course of the first half of the year".

The one-week deposit rate stands 140 bp over the 2.9% base rate.

The one-week depo rate moved in tandem with the base rate from June until November, when MNB's Monetary Council decided the central bank must be allowed to be set it over the base rate to respond to an increase in short-term risks in financial and commodity markets "quickly and flexibly".

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