Hungarian central bank to adopt new policy rate
From September it will use the rate on a new deposit facility with a longer maturity
The Central Bank of Hungary will adopt a new policy rate on September 23 as part of its efforts to encourage banks to buy more government debt, it announced today (June 2).
Currently, it uses the rate on its two-week deposit facility, which the monetary council lowered to 1.65% on May 26. In September, it will switch to the rate on a new three-month, fixed interest facility.
The central bank's theory is that three-month deposits are less attractive from a regulatory perspective than government
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