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Hungary to End Controversial Cap on Bank Deposits from April

HUNGARY
  • Bloomberg report that Hungary will end a cap on bank deposit rates from April 1 as part of its latest steps to roll back measures which had been criticised by the central bank for interfering with its monetary policy.
  • Last week, the Economy Ministry said that the government will not be renewing the interest rate cap on small and middle size firms, due to end on April 1. The cap has been in effect since November 2022 and the ministry said it saved more than 50,000 firms a total HUF 150bln ($410m) in interest payments.
  • Prime Minister Viktor Orban will attend an EU summit today. There are no economic releases scheduled for the remainder of the week, with attention turning to next week's NBH meeting.

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