• Coronavirus in Hungary
  • coronavirus
  • Budapest
  • Covid immunity certificate in Hungary
  • Covid immunity certificate/vaccine passport
  • Hungary border control
  • HelloMagyar
Hungary’s central bank leaves base rate on holdHungary’s central bank leaves base rate on holdHungary’s central bank leaves base rate on holdHungary’s central bank leaves base rate on hold
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Support us
Daily News Daily News · 28/04/2020
· Business

Hungary’s central bank leaves base rate on hold

economy Hungary National Bank of Hungary
National Bank of Hungary

Photo: Daily News Hungary - Alpár Kató

The Monetary Council 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 also decided to leave the central bank’s O/N and one-week collateralised loan rates unchanged at 1.85 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.

At a meeting three weeks earlier, the central bank’s policy makers unveiled a package of measures to mitigate the impact of the coronavirus pandemic on the economy and establish the conditions for a jump-start. The measures included 1,500 billion forints (EUR 422.2m) in financing for cheap loans for businesses and a programme to buy government securities on the secondary market.

On Tuesday, the National Bank of Hungary said

its government securities purchases will take place on the secondary market at regular weekly auctions and in transactions outside of the auctions.

To prevent the NBH from becoming a dominant market player, the amount it may purchase of any securities series will be capped at 33 percent of outstanding stock, in line with European Central Bank practices.

The programme will involve only fixed-rate Hungarian government securities.

The Council said the NBH’s mandate remains “to achieve and maintain price stability, to preserve financial stability, as well as to support the Government’s economic policy”.

It added that the asset purchase programmes are intended “to prevent damage to…monetary policy transmission and manage economic and financial risks arising from the coronavirus pandemic”.

Both asset purchase programmes will launch on May 4.

The Council sees inflation falling under the central bank’s 3 percent mid-term target in the coming months, mainly as the result of a sharp decline in fuel prices, before stabilising gradually at 3 percent.

Core inflation excluding indirect tax effects — a bellwether indicator of underlying inflation — “is likely to be around 3.2-3.5 percent on average in 2020, before decreasing gradually to 3 percent”, the policy makers added.

The Council said it “continuously assesses incoming data and changes in outlook” and that the NBH “will use every instrument at its disposal to achieve price stability and to support the Hungarian economic and financial system”.

singapore
Read alsoHungary can replicate Singapore’s success after crisis, governor of the central bank

Source: MTI

economy Hungary National Bank of Hungary
Share
Daily News
Daily News

Related posts

Retail sector Hungary Aldi
06/07/2022

Trade union: shops should close on Sunday afternoons in Hungary


Read more
85.6 million euros to supporting Hungary's railway cargo transport
05/07/2022

Rail cargo transport could be alternative to sea shipping, says Hungarian minister


Read more
Hungarian forint currency change
05/07/2022

When will Hungarians pay 450 Forints for 1 Euro?


Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.


Thank you!

You have successfully joined our subscriber list.


.


Latest news
  • Hungarian FM: only countries with strong national identities can be successful
  • Socialists: Hungary’s next year’s draft budget ‘unsustainable’
  • Looking to buy a cheap holiday home in Hungary? Have a look here! – PHOTOS
  • Another bear sighting in Hungary!

About us

Contact us

© 2022 DailyNewsHungary. All rights reserved!
Posting....