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NBH rate-setters leave base rate on hold

The National Bank of Hungary rate-setters have left the base rate unchanged at 0.90 percent and the central bank O/N deposit rate at -0.05 percent, at a meeting on Tuesday.

The National Bank of Hungary rate-setters have left the base rate unchanged at 0.90 percent and the central bank O/N deposit rate at -0.05 percent, at a meeting on Tuesday.

At a meeting three weeks ago, the central bank’s policymakers unveiled a package of measures to mitigate the impact of the coronavirus pandemic on the economy and establish the conditions for a jump-start. The measures included HUF 1,500 billion (EUR 422.2m) in financing for cheap loans for businesses and a program to buy government securities on the secondary market.

The Monetary Council also decided at the meeting on April 7 to raise the rates for the central bank’s O/N and one-week collateralised loans by 95bp to 1.85 percent. Those rates were also kept on hold at the meeting on Tuesday.