The Monetary Council of the National Bank of Hungary (NBH) left the central bank base rate and overnight deposit rate unchanged at 0.90 percent and -0.05 percent, respectively, at a monthly policy meeting on Tuesday.
The Council also left the rates on hold at the previous policy meeting.
At a meeting in March, the Council raised the overnight deposit rate by 10 basis points, marking the first policy tightening in years. They also decided to reduce a targeted squeeze-out of liquidity from central bank instruments by 100 billion forints to 300 billion-500 billion forints. Since the crowd-out target was cut, stock of the central bank’s FX swaps has fallen by some 263 billion forints. However, the level of FX swaps remained practically flat after the latest couple of weekly tenders.