The National Bank of Hungary keeps base rate on hold

Budapest, November 22 (MTI) – The National Bank of Hungary’s Monetary Council left the central bank’s base rate on hold at 0.90 percent at a policy meeting on Tuesday.

The decision was in line with expectations.

The Council also narrowed the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates. The O/N collateralised loan rate, the top of the range, was lowered from 1.05 percent to 0.90 percent, while the O/N central bank deposit rate remained unchanged at -0.05 percent.

The interest rate for the one-week collateralised loan was lowered from 1.00 percent to 0.90 percent.

The Council signalled an end to an easing cycle at a policy meeting in May and have since stood by their position on keeping the base rate on hold. At the same time, the Council has taken a number of unconventional monetary policy moves such as limiting the amount and frequency of the NBH’s three-month deposits, the central bank’s main sterilisation instrument, as well as cutting banks’ reserve requirement ratio.

Source: MTI