NBH: monetary council is ready to continue to non-traditional tools to loosen the monetary conditions
If inflation is persistently below the inflation target of the Hungarian National Bank (MNB) Monetary Council is ready to continue to the monetary conditions are more relaxed for non-traditional, targeted tools application. The monetary council’s April rate decision of the meeting of the council was supported by the basic interest rate, the overnight deposit rate, overnight lending rate and the one-week interest on loans held – find out about the meeting on Wednesday, issued an abbreviated protocol.
The council concluded: the central bank forecasts it meets the conditions in addition to the base rate’s current level and the central banks by converting available loose monetary conditions for the sustainable provision in line with the inflation target in the medium term by accessing and the real economy this is sufficient encouraging.
The monetary council, the three-month deposits for phase-in limit and that any future changes to the toolbar is an integral part of. The central bank remains the money market yield through to the loose monetary conditions are maintained and the economic growth can be encouraged. The council aspires to the three-month deposits for the introduced restriction effectively explain the expected impact, they added.