Here is the Hungarian central bank’s latest decision about the base rate – UPDATED

Hungarian rate-setters left the base rate on hold at 13 percent at a regular policy meeting on Tuesday. The Council also decided on Tuesday to keep the central bank’s O/N deposit rate at 12.50 percent and the O/N collateralised loan rate at 25 percent.

The O/N deposit rate and the collateralised loan rate mark the bottom and the top, respectively, of the central bank’s “interest rate corridor”. The base rate is paid on mandatory reserves. The rate-setters had signalled an end to the tightening cycle at their monthly policy meeting in September, but said tight monetary conditions would be maintained with a focus on sterilising liquidity and improving monetary policy transmission.

On October 14, the policymakers announced a decision to launch O/N deposit tenders on a daily basis. The central bank has since offered the liquidity sterilisation instrument at a rate of 18 percent.

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In a statement released after the meeting, the Council said tight monetary conditions will be maintained over a prolonged period, adding that this would “ensure that inflation expectations are anchored, and the inflation target is achieved in a sustainable manner”. The central bank is focusing on sustained shifts in financial market conditions, and will use the instruments introduced last month until a trend improvement in risk perceptions occurs, the Council said. It added that the central bank directly meets major foreign currency liquidity needs that arise from covering net energy imports till the end of the year. Looking ahead, the National Bank of Hungary also takes into account considerations regarding the adequacy of foreign currency reserves, the Council said.