Monetary Council leaves base rate at 0.6%
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The Monetary Council of the National Bank of Hungary (MNB) decided to leave the central bank base rate unchanged, at 0.6%, according to a release on the central bank's website after its monthly policy meeting this week.
The council also decided yesterday to leave the overnight deposit rate at -0.05% and the O/N and one-week collateralized loan rates at 1.85%. The O/N deposit rate and the collateralized loan rate mark the bottom and the top, respectively, of the central bank's "interest rate corridor." The base rate is paid on mandatory reserves and preferential deposits.
In a statement released after the meeting, the Monetary Council said it would stick to its current policy stance but reallocate liquidity from its collateralized lending facility to its quantitative easing program, stepping up purchase volume and standing ready to expand purchases to securities under 10 years.
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