MNB: The Monetary Council did not change the base rate

Neither end of the interest rate corridor was changed: the overnight (O/N) deposit rate remained at 5.50 percent, and the upper end, the overnight (O/N) loan rate, remained at 7.50 percent.

At the previous interest rate-setting meeting on March 25, the board discussed a single decision proposal, which was to keep the base rate unchanged, which was in line with analysts’ expectations.

Mihály Varga, who has held the post of central bank governor since March, emphasized at the press conference following the decision that maintaining tight monetary conditions is justified, and that due to the upward inflation risks, the base rate may remain at its current level for a longer period of time.

The central bank’s base rate was last changed in September, when the council members decided on a 25 basis point reduction.