MNB raises 1-week deposit rate 50 bp to 7.25%

MNB

The National Bank of Hungary (MNB) raised the rate for its one-week deposit facility by 50 bp to 7.25% ahead of a tender on Thursday, according to a report by state news wire MTI.

MNB policymakers have said the central bank "normally" determines the one-week deposit rate on a monthly basis - after monthly policy meetings - but it stands ready to "respond quickly and flexibly" by setting the rate "if warranted by short-term risks in financial and commodity markets".

On Monday, the forint weakened close to 403 to the euro, a new historical low.

At their last monthly policy meeting, on May 31, the MNB's Monetary Council said the base rate - which now stands at 5.9% - would gradually catch up to the level of the one-week deposit rate "in the coming months".

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