ADVERTISEMENT

MNB weekly QE purchases close to HUF 58 bln

MNB

MNB headquarters in Budapest.

Image by posztos / Shutterstock.com

The National Bank of Hungary (MNB) bought HUF 57.7 billion of securities in the framework of a quantitative easing program in the week ended July 4, up from HUF 55 bln in the previous week, data published on the central bank's website show.

Weekly purchase volume has been around HUF 60 bln nearly every week since early February.

The latest weekly QE data show the central bank bought HUF 30 bln of government securities at auction and HUF 27.7 bln outside of auction. The bonds included HUF 21.7 bln of government securities with terms under ten years.

The total purchases made in the framework of the QE program reached HUF 2.573 trillion on July 4, including HUF 2.503 tln of government securities and HUF 69.3 bln of bonds from other issuers with government guarantees, such as the Hungarian Development Bank (MFB) and Magyar Eximbank.

The central bank's Monetary Council performed a revision on the program as assets approached the HUF 2 tln mark at a monthly policy meeting in April, but set no limit for total stock. The next revision will be performed when stocks reach HUF 3 tln, the council said. In the meantime, the policymakers said MNB would continue to use the QE 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 necessary".

The central bank launched the QE program in the spring of 2020 "to prevent damage...to monetary policy transmission and manage economic and financial risks arising from the coronavirus pandemic". The program has since been expanded to include securities with maturities under 10 years, while a limit on the volume of securities series MNB may purchase has been scrapped.

ADVERTISEMENT

Pressure increasing on CFOs - PwC survey Analysis

Pressure increasing on CFOs - PwC survey

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.