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Hungary Creates New Benchmark Rate to Fuel State-Debt Demand

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Hungary’s central bank will switch its main policy rate to encourage local banks to buy government debt and cut the nation’s reliance on foreign financing.

The National Bank of Hungary will use a three-month deposit instrument as its new benchmark from Sept. 23, instead of a two-week facility, and access to the latter will be limited, it said in a statement. The forint dropped to its weakest against the euro since February.