Gov't to Lift Cap on Deposit Rates From April 1
Image by Shutterstock.com
The government will phase out a cap on deposit rates from April 1, the National Economy Ministry said on Thursday.
The cap, set at the average three-month discount T-bill auction yield, was rolled out on November 22, 2022, as a measure to counter interest income of a scale that was "unjustified and unfair". The cap was applied to institutional investors, pension funds, insurers, and investment funds, as well as retail banking clients with HUF 20 mln or more on their accounts.
The ministry noted that the effective central bank base rate and interbank interest rates had fallen close to ten percentage points since the cap was introduced, as inflation dropped sharply supported by government measures.
The average yield at the last auction of three-month T-bills, on Tuesday, was 6.61%. The three-month Bubor stood at 8.03% on Wednesday.
Erste Bank Hungary Q1 Earnings Close to HUF 29 bln
Hungary Welcomes Extension of China's Visa Exemption Policy
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.
