Weekly QE purchases of gov't bonds at 50% of target

MNB

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The National Bank of Hungary (MNB) bought HUF 20 billion of government securities in the framework of a quantitative easing program in the week ended December 12, under the HUF 40 bln weekly target, data published on the central bank's website show.

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". Central bank policymakers decided in August 2021 to start tapering and set the target amount for weekly purchases at HUF 50 bln. About a month later, the target was lowered to HUF 40 bln for the period until the end of the fourth quarter. 

The latest weekly QE data show that bought HUF 10 bln of government securities at a weekly auction and HUF 10 bln outside of auction.

The total amount of government securities purchased in the framework of the scheme exceeded HUF 3.484 trillion on December 12.

The central bank has also purchased HUF 153.2 bln of bonds from other issuers with government guarantees, such as the Hungarian Development Bank (MFB) and Magyar Eximbank, in the QE scheme, including HUF 10 bln in the week ended December 12.

MNB will keep the securities purchased in the framework of the program on its balance sheet until maturity, news agency MTI reports.

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