Weekly QE purchases of gov't bonds in line with target
Photo by Adriana Iacob/Shutterstock.com
The National Bank of Hungary (MNB) bought HUF 38.5 billion of government securities in the framework of a quantitative easing program in the week ended October 24, practically level with the HUF 40 bln weekly target, state news wire MTI reports citing data published by the central bank.
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 MNB bought HUF 20 bln of government securities at a weekly auction and HUF 18.5 bln outside of auction.
The total amount of government securities purchased in the framework of the scheme reached more than HUF 3.274 trillion on October 24.
The central bank has also purchased HUF 111.5 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 6 bln in the week ended October 24.
MNB will keep the securities purchased in the framework of the program on its balance sheet until maturity.
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.