MNB raises the 1-week deposit rate from 20bp to 3.8%
MTI – Econews
Thursday 23 December 2021, 1:30 p.m.
Photo by Adriana Iacob / Shutterstock.com
The National Bank of Hungary (MNB) announced a rate of 3.8% on its one-week deposit facility ahead of a tender on Thursday, 140 bps above the base rate, according to a report from the wire of MTI state press.
The central bank raised the deposit rate to one week by 20bp compared to the tender a week earlier.
At a monthly policy meeting in December, the MNB Monetary Council said changes to the central bank’s week-long deposit facility “will fuel the [MNB]tightening cycle for an extended period. “Policymakers have said the MNB is prepared to set the one-week deposit rate” persistently above the base rate. “
The board raised the base rate from 30bp to 2.4% at the December policy meeting.
The one-week deposit rate moved in tandem with the base rate from June to November, when the board decided that the MNB should be allowed to be pegged above the base rate to respond to increased risk. short term in the financial and commodity markets “quickly and flexibly”.
SUPPORT BUDAPEST BUSINESS JOURNAL
Producing worthy journalism is an expensive endeavor. For 27 years, the editors, editors and reporters of the Budapest Business Journal have strived to bring you business news that works – information that is reliable, factual, accurate, and presented without fear or favor.
News organizations around the world have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. More recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer this same opportunity to our readers. We would like to invite you to help us provide the quality business journalism you need. Hit our Support BBJ button and you can choose how much and how often you send us your contributions.