MNB’s weekly QE purchases close to HUF 54 billion
The National Bank of Hungary (MNB) bought HUF 53.6 billion of securities under a quantitative easing program during the week ended July 18, up from HUF 52.7 billion the previous week. MTI reports, citing data released by the Central Bank.
Weekly buying volume was around HUF 54 billion for the fourth week in a row after hitting nearly HUF 60 billion almost every week since early February.
The latest weekly QE data shows the central bank bought HUF 26.3 billion in government securities at auction and HUF 27.4 billion off-auction. The bonds included HUF 24.1 billion in government securities with a maturity of less than 10 years.
Total purchases under the QE program reached HUF 2,679 trillion on July 18, including nearly HUF 2.61 billion in government securities and HUF 69.3 billion in bonds from other issuers benefiting from public guarantees, such as the Hungarian Development Bank (MFB) and the Magyar Eximbank.
The central bank’s Monetary Board revised the program as assets approached HUF 2,000,000 at a monthly policy meeting in April, but did not set any limit for the total stock. The next review will be made when stocks reach HUF 3 billion, the council said. In the meantime, policymakers said the MNB would continue to use the quantitative easing program “by maintaining a lasting presence in the market, taking a flexible approach to changing the structure of weekly securities purchases, to the extent and for the time needed “.
The MNB launched the quantitative easing program in spring 2020 “to prevent damage … to the transmission of monetary policy and to manage the economic and financial risks resulting from the coronavirus pandemic”. The program has since been expanded to include securities with maturities of less than 10 years, while a limit on the volume of MNB Series securities that MNB can buy has been removed.
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