Weekly QE purchases of gov't bonds reach HUF 47 bln
MNB building in Budapest.
Photo by Andocs / Shutterstock.com
The National Bank of Hungary (MNB) bought HUF 47 billion of government securities in the framework of a quantitative easing program in the week ended September 19, a little under the HUF 50 bln weekly target amount, state news wire MTI reports citing data released by MNB.
MNB 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". In August 2021, central bank policymakers decided to start tapering and set a target amount for weekly purchases of HUF 50 bln "as a first step", but said the MNB "may depart from this arrangement in a flexible manner, depending on the supply and other market conditions".
The latest weekly QE data show the MNB bought HUF 34 bln of government securities at a weekly auction and HUF 13 bln outside of auction.
The total amount of government securities purchased in the framework of the scheme reached almost HUF 3,075 trillion on September 19.
The central bank has also purchased HUF 87.3 bln of bonds from other issuers with government guarantees, such as the Hungarian Development Bank (MFB) and Magyar Eximbank, in the QE scheme, including HUF 5 bln in the week ended September 19.
MNB will keep the securities purchased in the framework of the program on its balance sheet until maturity.
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