Hungarian Policy Makers Keep Base Rate & Deposit Rate On Hold

  • 27 May 2020 12:30 PM
  • Hungary Matters
Hungarian Policy Makers Keep Base Rate & Deposit Rate On Hold
Hungarian rate-setters kept the central bank base rate on hold at 0.90% and the O/N deposit rate at -0.05% at a monthly policy meeting on Tuesday.

The Monetary Council also decided to leave the central bank’s O/N and one-week collateralised loan rates unchanged at 1.85%.

The O/N deposit rate and the collateralised loan rate mark the bottom and the top, respectively, of the central bank’s “interest rate corridor”.

The base rate is paid on mandatory reserves and preferential deposits.

In a statement issued after the meeting, the Council noted that it had rolled out a number of “coordinated and targeted measures” in recent months to ensure “the required amount of liquidity is available for all economic agents at a wide range of maturities and with favourable conditions” in the face of the coronavirus crisis.

These included a widening of the interest rate corridor, the activation of a one-week deposit facility and the introduction of a fixed-rate collateralised lending facility, as well as the launch of the FGS Go! scheme to promote lending to microbusinesses and SMEs.

Click here to read the press release on the Monetary Council meeting of 26 May 2020

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