O/N deposit rate, base rate kept on hold


Photo by Adriana Iacob/Shutterstock.com

The Monetary Council of the National Bank of Hungary (MNB) decided to keep the central bank O/N deposit rate at -0.05% and the base rate at 0.90% at a monthly policy meeting on Tuesday, state news wire MTI reports.

(Photo: Adriana Iacob/Shutterstock.com)

The council has left the rates unchanged for more than half a year and have tweaked monetary policy on a quarterly basis, coinciding with the publication of the central bankʼs Inflation Report. 

After the latest report was published in September, the rate-setters decided to set the amount of liquidity to be crowded out from central bank instruments in the fourth quarter at HUF 300 billion-500 bln, up from HUF 200 bln-400 bln in the previous quarter. The rate-setters take the level into account when setting the stock of MNB swap instruments, one of the central bankʼs main policy tools.

In a statement released after the policy meeting on Tuesday, the council said they continue to "rely mainly" on incoming data and the projections in the Inflation Report.

The council also reiterated that downside inflation risks had "strengthened further" because of the economic slowdown in Europe, and that the external monetary policy environment had become looser as a result of decisions by leading central banks.

"According to global leading central banksʼ indications and market pricing, a loose monetary policy environment will be persistently maintained, and additional moderate loosening measures can be expected," the council added.

According to MTI, the council repeated that its monetary policy stance would continue to be "accommodative" and that economic agentsʼ financing costs "will be favorable".

Serbia Inflation Close to 3-year Low in May Figures

Serbia Inflation Close to 3-year Low in May

Karácsony Calls for Budapest Mayoral Election Repeat Elections

Karácsony Calls for Budapest Mayoral Election Repeat

2 Major Ground Handlers at Budapest Airport Join Forces Transport

2 Major Ground Handlers at Budapest Airport Join Forces

Summer Camp Prices Have Increased 10-15% Tourism

Summer Camp Prices Have Increased 10-15%


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.