Economics
Hungary Central Bank to Cap Benchmark Deposits to Avert Rate Cut
- Change to benchmark facility will be second in 12 months
- Policy seen as bid to keep rates steady as long as possible
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Hungary’s central bank will cap deposits in its benchmark facility as policy makers seek to ease monetary conditions and stimulate economic growth without cutting the main rate.
Starting in August, the National Bank of Hungary will accept deposits in its three-month facility once a month, compared with once a week now, Vice President Marton Nagy told reporters in Budapest on Tuesday. The authority will then cap deposits from October 26, he said, adding that the details on limits will be published in September and updated once a quarter.