Hungarian government abolishes deposit rate caps on 1 April
The government will phase out a cap on deposit rates from 1 April, the national economy ministry said on Thursday.
Government to abolish deposit rate caps
The cap, set at the average three-month discount T-bill auction yield, was rolled out on 22 November, 2022, as a measure to counter interest income of a scale that was “unjustified and unfair”. The cap was applied to institutional investors, pension funds, insurers and investment funds, as well as retail banking clients with HUF 20 million (EUR 50,000) or more on their accounts.
The ministry noted that the effective central bank base rate and interbank interest rates had fallen close to ten percentage points since the cap was introduced, as inflation dropped sharply supported by government measures.
Read also:
If you would like to support the work of the Daily News Hungary staff and independent journalism,
please make a donation here
please make a donation here
Hot news
What happened today in Hungary? – 27 April, 2024
Hungary’s popular Sziget Festival 2024 announces major headliner
Escape to nature: 5 magical parks in Budapest – PHOTOS
Surprising: Private super railway may connect Budapest with Budapest Airport
The world’s oldest Olympic champion, Ágnes Keleti, visited Madame Tussauds Budapest
Unexpected: President Xi will announce colossal Chinese carmaking plant near Hungarian city