MNB Monetary Council leaves base rate unchanged at 0.60%

MNB

Image by Jessica Fejos

The Monetary Council of the National Bank of Hungary (MNB) decided to leave the central bank base rate unchanged at 0.60% at a monthly policy meeting on Tuesday, according to an announcement on the MNBʼs website.

Photo by Jessica Fejos

The decision followed two consecutive 15 base point rate cuts at policy meetings in June and July.

Council members agreed in July that the 0.60% base rate supports price stability, financial stability and the economic recovery and said it was important to maintain a "safe distance" from the range close to zero.

The Council also decided on Tuesday to leave the O/N deposit rate at -0.05% and the O/N and one-week collateralized loan rates at 1.85%.

The O/N deposit rate and the collateralized loan rate mark the bottom and the top, respectively, of the central bankʼs "interest rate corridor."

The base rate is paid on mandatory reserves and preferential deposits.

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.