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

MNB

Photo by Adriana Iacob/Shutterstock.com

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.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Chain Bridge to be closed for traffic for 18 months City

Chain Bridge to be closed for traffic for 18 months

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.