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MNB raises rate on collateralized lending facility by 15 bp to 0.75%

The National Bank of Hungary (MNB) raised the rate on its three- and five-year collateralized lending facility by 15 bp to 0.75% at a weekly tender on Wednesday, according to a report by state news wire MTI.

Photo by Adriana Iacob/Shutterstock.com

Until now, the rate on the facility has tracked the base rate which stands at 0.6% at present.

MNB launched the long-term collateralized lending facility for banks in March to ease strains in funding markets caused by the coronavirus pandemic. The facility carries a fixed rate, defined at each tender.

The rate rise comes days after the central bank raised the rate on its one-week deposit facility at a weekly tender, also by 15 bp to 0.75%. The rate on the deposit facility had also tracked the base rate previously.