The one-week depo rate has moved in tandem with the base rate since late June, but the central bank's Monetary Council said at a monthly policy meeting on Tuesday that MNB "must be ready to set the interest rate on the one-week deposit above the base rate", allowing it to respond to a recent increase in short-term risks in financial and commodity markets "quickly and flexibly".
MNB deputy-governor Barnabás Virág signaled at a press conference after the meeting that the one-week depo rate would rise over the base at the next tender for the facility on Thursday.
Policymakers raised the base rate by 30 bp to 2.1% at the meeting on Tuesday, after CPI spiked at 6.5% in October.
MNB accepted all HUF 7.704 tln of bids at the tender for the one-week depo on Thursday.
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.
