MNB raises 1-week deposit rate 30 bp to 6.45%

MNB

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The National Bank of Hungary (MNB) raised the rate for its one-week deposit facility by 30 bp to 6.45% ahead of a tender on Thursday, according to a report by state news wire MTI.

The increase followed a decision on Tuesday by policymakers to raise the central bank's base rate by 100 bp to 5.4%.

The 30 bp rise for the one-week deposit rate matched that of the previous rise a month earlier, days after the MNB rate-setters' March policy meeting.

MNB's Monetary Council said in a statement released after the April policy meeting that the base rate will "gradually catch up" to the level of the central bank's one-week deposit facility "in the coming months".

The policymakers said the central bank "normally determines" the one-week deposit rate "on a monthly basis", but added that it "continues to stand ready to respond quickly and flexibly by setting the interest rate on the one-week deposit instrument if warranted by short-term risks in financial and commodity markets".

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