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Weekly QE purchases of gov't bonds reach HUF 44 bln

MNB

Photo by Adriana Iacob/Shutterstock.com

The National Bank of Hungary (MNB) bought HUF 44.4 billion of government securities in the framework of a quantitative easing program in the week ended September 26, under the HUF 50 bln weekly target amount, 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." 

In August 2021, central bank policymakers decided to start tapering and set a target amount for weekly purchases of HUF 50 bln "as a first step", but said MNB "may depart from this arrangement in a flexible manner, depending on the supply and other market conditions". In September the Council decided to lower the weekly target amount for purchases from HUF 50 bln to HUF 40 bln from the week starting September 27.

The latest weekly QE data show the MNB bought HUF 31 bln of government securities at a weekly auction and HUF 13.4 bln outside of auction.

The total amount of government securities purchased in the framework of the scheme reached HUF 3.119 trillion on September 26.

The central bank has also purchased HUF 92.3 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 5 bln in the week ended September 26.

MNB will keep the securities purchased in the framework of the program on its balance sheet until maturity.

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