MNB weekly QE purchases rise over HUF 67 bln

MNB

Photo by Adriana Iacob/Shutterstock.com

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 damage...to 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.

ADVERTISEMENT

Business confidence edges up as consumer sentiment weakens Analysis

Business confidence edges up as consumer sentiment weakens

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Energy Efficiency: End-users, Energy Traders and Other Stake... Inside View

Energy Efficiency: End-users, Energy Traders and Other Stake...

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.