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.
