Base Rate Kept On Hold By Hungarian Central Bank

  • 23 Sep 2020 11:14 AM
  • Hungary Matters
Base Rate Kept On Hold By Hungarian Central Bank
Hungarian rate-setters kept the base rate on hold at 0.60% at a regular meeting. The Monetary Council also left the interest rate corridor unchanged, the National Bank of Hungary (NHH) said.

In a statement released after the meeting the Council said the 0.60% base rate “supports price stability, the preservation of financial stability and the recovery of economic growth in a sustainable manner”.

“The Council remains committed to maintaining price stability during the coronavirus pandemic and pays particular attention to the persistence of inflationary effects arising as a result of the economic recovery,” the rate-setters said.

“If warranted by a persistent change in the outlook for inflation, the Council will be ready to use the appropriate instruments,” they added.

The Council said it decided to raise the allocation for the NBH’s Bond Funding for Growth Scheme (BGS) from 450 billion forints to 750 billion forints (EUR 2.07bn). “The increased amount may help the Hungarian corporate bond market continue to converge to European and regional averages,” the policy makers said.

The NBH launched the BGS more than a year ago to give impetus to Hungary’s relatively small corporate bond market.

The Council noted they had decided at the previous policy meeting to raise weekly purchases of government bonds in the framework of a quantitative easing programme to 40 billion forints.

They said the programme will be used “through a lasting market presence to the extent required”, adding that the NBH will continue to purchase securities with long maturities.
 

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • Hungarian Central Bank Keeps Base Rate On Hold

    Hungarian Central Bank Keeps Base Rate On Hold

    • 16 Dec 2020 9:16 AM

    Hungarian central bank (NBH) rate-setters kept the base rate on hold at 0.60% at a regular meeting. They also decided to leave the O/N deposit rate at -0.05% and the O/N and one-week collateralised loan rates at 1.85%.

  • Hungary Q3 GDP Contracts By 4.6 Percent

    Hungary Q3 GDP Contracts By 4.6 Percent

    • 2 Dec 2020 10:00 AM

    Hungary’s economy shrank by 4.6% in the third quarter, according to a second reading of data released by the Central Statistical Office (KSH).

  • Hungary Central Bank Keeps Base Rate On Hold

    Hungary Central Bank Keeps Base Rate On Hold

    • 18 Nov 2020 10:03 AM

    Hungarian rate setters on Tuesday kept the base rate at 0.60%, while they also left the interest rate corridor unchanged, the National Bank of Hungary said on Tuesday.