The central bank 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".
The latest weekly QE data show the MNB bought HUF 29 bln of government securities at a weekly auction and HUF 21 bln outside of auction.
The total amount of government securities purchased in the framework of the scheme reached HUF 3.028 trillion on September 12.
The central bank has also purchased HUF 82.3 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 4 bln in the week ended September 12.
MNB will keep the securities purchased in the framework of the program on its balance sheet until maturity.
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