The measure is part of a streamlining of MNB's monetary policy toolkit launched in the fall of 2023 with the discontinuation of the central bank's O/N quick deposits offered at daily tenders and a shift to reserve accounts as the main instrument for sterilizing banking sector liquidity.

The discontinuation of the variable longer-term deposit facility will "further enhance the role of the central bank base rate and the effectiveness of monetary policy transmission", MNB said.

Average stock of variable rate deposits of lenders with the central bank stood at HUF 690 bln in the month of December, the latest MNB data show.