Budapest, October 25 (MTI) – Hungarian rate-setters left the base rate on hold at 0.90 percent at a policy meeting on Tuesday.
The decision was in line with expectations.
The National Bank of Hungary’s Monetary Council also lowered the top of the interest rate corridor, a band around the base rate that prevents extreme fluctuations of interbank rates, by 10 basis points. The O/N collateralised loan rate, the top of the range, now stands at 1.05 percent, while the O/N central bank deposit rate remains at -0.05 percent.
The Monetary 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, while leaving room for the possibility of using unconventional monetary policy tools.