MNB raises 1-week deposit rate 30 bp to 6.75%

MNB

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The National Bank of Hungary (MNB) raised the rate for its one-week deposit facility by 30 bp to 6.75% 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 50 bp to 5.9%.

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

After the May policy meeting, on Tuesday, deputy governor Barnabas Virág had flagged a continuation of the monthly one-week deposit rate increases at an unchanged pace.

MNB's Monetary Council said in a statement released after the Tuesday meeting that the base rate will "gradually catch up" to the one-week deposit rate "in the coming months".

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