National Bank of Hungary keeps base rate on hold, as expected
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Budapest, May 23 (MTI) – The National Bank of Hungary’s Monetary Council decided to keep the central bank’s key rate on hold at 0.90 percent at a meeting on Tuesday, as expected.
The Council has left the base rate on hold since signalling an end to an easing cycle at a policy meeting one year ago. However, the rate-setters have made use of “unconventional, targeted” instruments to ease monetary policy further, such as placing a limit on the central bank’s main instrument for sterilising liquidity as well as modifying the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates.
At the meeting on Tuesday, the Council left the interest rate corridor unchanged, with the O/N collateralised loan rate at 0.90 percent and the O/N central bank deposit rate at -0.05 percent.