Hungaryʼs central bank holds key rate at 0.9%

EU

Jessica Fejos

In line with the market consensus, rate setters on the Monetary Council of the National Bank of Hungary (MNB) decided to leave the central bank’s base rate on hold at 0.9% at a policy meeting today, according to reports. The decision was widely expected.

The Council also lowered the top of the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates, by 10 bps, Hungarian news agency MTI reported. The O/N collateralized loan rate, the top of the range, stands at 1.05%, while the O/N central bank deposit rate is -0.05%.

"The [MNB] aims to ease monetary conditions and provide a corresponding degree of support to the economy through a decline in money market rates. The Monetary Council is making every effort to ensure that the limit imposed on the stock of three-month deposits exerts its expected easing effect efficiently," the news agency cited the central bankʼs statement.

The Council signaled an end to an easing cycle at a policy meeting in May and has since stood by its position on keeping the base rate on hold, while leaving room for the possibility of using unconventional tools of monetary policy.  

ADVERTISEMENT

Business confidence falls slightly in June Analysis

Business confidence falls slightly in June

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

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.