MNB weekly QE purchases rise over HUF 67 bln


Photo by Adriana Iacob/

The National Bank of Hungary (MNB) bought HUF 67.3 billion of securities in the framework of a quantitative easing program in the week ended May 2, up from HUF 60 billion in the previous week, data published on the central bank's website show, according to a report by state news wire MTI.

The central bank's Monetary Council performed a revision on the program as assets approached the HUF 2 trillion mark at a monthly policy meeting in April, but set no limit for total stock. The next revision will be performed when stocks reach HUF 3 tln, the Council said. In the meantime, the policymakers said MNB would continue to use the QE program "by maintaining a lasting presence in the market, taking a flexible approach to changing the structure of weekly securities purchases, to the extent and for the time necessary".

Weekly purchases in the framework of the program have been around HUF 60 bln nearly every week since early February.

The latest weekly QE data show the central bank bought HUF 25 bln of securities at auction and HUF 42.3 bln outside of auction. The bonds included HUF 39 bln of government securities with terms under 10 years and HUF 7.3 bln of bonds issued by Magyar Eximbank which have a government guarantee.

The total purchases made in the framework of the QE program reached HUF 2.039 tln on May 2, including nearly HUF 1.979 tln of government securities and HUF 60.6 bln of bonds from other issuers with government guarantees, such as the Hungarian Development Bank (MFB) and Magyar Eximbank.

MNB launched the QE program in the spring of 2020 "to prevent monetary policy transmission and manage economic and financial risks arising from the coronavirus pandemic". The program has since been expanded to include securities with maturities under ten years, while a limit on the volume of securities series MNB may purchase has been scrapped.


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