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Banks place HUF 25 bln in MNB three-month depos

The National Bank of Hungary (MNB) accepted HUF 25 billion of placements in its three-month deposits for banks at a tender on Wednesday, the same as the announced limit, state news agency MTI reported.   

Banks bid to place HUF 131.7 bln in the facility, the central bankʼs main liquidity sterilization instrument, compared to HUF 50 bln in maturing three-month deposits. The tender thus reduced the total three-month deposit stock from HUF 300 bln to HUF 275 bln.    

The MNBʼs Monetary Council reduced the cap on the stock of three-month deposits to HUF 75 bln for the end of the fourth quarter at a policy meeting in September. 

The central bank policy-makers have gradually reduced the three-month depo stock since last autumn by setting end-of-quarter caps. The measure is one of several "unconventional" policy moves to support monetary easing while keeping the base rate unchanged.