New monetary policy tools in Hungary introduced to wean country off external debt
Hungarian central bank looks to incentivise lenders to invest in government bonds
The Central Bank of Hungary said yesterday it will overhaul its monetary policy framework in a bid to increase bank pruchases of forint-denominated sovereign bonds - a move that appears to be part of a larger government strategy to reduce Hungary's dependency on funds denominated in foreign currency.
The central bank said it would replace two-week repo ‘bills', its "main policy instrument" for setting short-term interest rates, with a deposit facility on August 1. Unlike the current two-week
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