Hungary central bank leaves base rate on hold
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Rate-setters of the National Bank of Hungary left the base rate unchanged at 0.90 percent and the central bank O/N deposit rate at -0.05 percent at a regular meeting on Tuesday.
The Council has left the rates unchanged for more than half a year and have tweaked monetary policy on a quarterly basis, coinciding with the publication of the central bank’s Inflation Report.
After the latest Inflation Report was published in September, the rate-setters decided to set the amount of liquidity to be crowded out from central bank instruments in the fourth quarter at 300-500 billion forints (EUR 894.8m-1.5bn), up from 200-400 billion forints in the previous quarter.
The rate-setters take the level into account when setting the stock of NBH swap instruments, one of the central bank’s main policy tools.