Government to extend mandatory discounts, deposit rate caps

Hungary’s government has decided to extend mandatory discounts on food products, a cap on interest rates on deposits of institutional investors and some private individuals, as well as a prohibition on the unrestricted transfer of central bank discount bills, until the end of the year, the economic development ministry said on Monday.

The deposit rate cap, set at the average three-month discount T-bill yield, was rolled out on November 22, 2022. It had been set to expire on Sept. 30. The cap applies to institutional investors, pension funds, insurers and investment funds, as well as to retail banking clients with 20 million forints (EUR 51,300) or more on their accounts.

The government also decided to extend a prohibition on the unrestricted transfer of central bank discount bills until Dec. 31, the ministry said.

The government-mandated discounts supermarkets must offer regularly on a number of food products has also been extended until the end of the year after being increased from 10 percent to 15 earlier in the year, the ministry said. It also noted that the scheme has been expanded to include the 8 products that had been subject to price caps before August.

Read also:

• Price cap scheme ends after 17 months, significant price drops come in Hungary