Hungary rate-setters at a regular policy meeting on Tuesday raised the base rate by 30 basis points to 2.10 percent while also raising both sides of the interest rate corridor by 30 basis points.
The policymakers accelerated the tightening cycle following 15 basis point hikes in the previous two months after October hit 6.5 percent.
Besides the hike to the base rate today,
the Monetary Council raised the O/N deposit rate by 30bp to 1.15 percent and the O/N and one-week collateralised loan rates by 30bp to 3.05 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”.