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Central Bank Keeps 1-Day Deposit Rate at 18%

HUNGARY
  • NBH is offering 18% interest on its one-day deposits, unchanged from Friday when the facility had its debut. (BBG)
  • As a reminder, on Friday, the NBH announced emergency new measures designed to tighten liquidity conditions and raising short-term market rates.
  • As well as raising the overnight collateralised lending rate from 15.5% to 25.0%, the central bank announced a new 1-day deposit facility and a 1-day FX swap instrument, with rates for these facilities set at 18% and 17%, respectively, above the official base rate of 13%.
  • Additionally, the central bank has committed to directly meeting major foreign currency liquidity needs related to energy imports.

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