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Policymakers raise base rate 185 bp to 7.75%

MNB

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The Monetary Council of the National Bank of Hungary (MNB) decided to raise the central bank base rate by 185 bp to 7.75% at a monthly policy meeting on Tuesday, according to a report by state news wire MTI.

The policymakers accelerated the pace of the tightening cycle, following a 50 bp increase in May and 100 bp hikes at the previous two monthly policy meetings.

The council also decided on Tuesday to raise the O/N deposit rate by 135 bp to 7.25% and the O/N and one-week collateralized loan rates by 135 bp to 10.25%.

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.

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