NBH raises one-week deposit rate by 200 bp to 9.75 pc

The National Bank of Hungary (NBH) raised the rate for its one-week deposit facility by 200 basis points to 9.75 percent on Thursday.

NBH deputy governor Barnabás Virág said late Wednesday that the central bank would raise the one-week deposit rate on Thursday, “reacting decisively” to the situation that has evolved on financial markets in recent days.

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The central bank stands ready to use all elements in its toolkit to intervene in the interest of ensuring price stability, he said. The situation that has developed on financial markets increases inflation risks and “clearly puts price stability at risk”, he added.

The forint had weakened to new historical lows on Tuesday and Wednesday.

The one-week deposit rate now stands 200 basis points over the 7.75 percent base rate.