National Bank of Hungary leaves key rate on hold

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.

Source: MTI