The central bank's main monetary policy decision-making body, the Monetary Council, decides on the policy rate. As of 18 September 2018, the Monetary Council has decided that the central bank's policy instrument will be the required reserves.
The MNB pays in a tiered fashion after the reserve accounts of credit institution. The penalty rate the central bank charges credit institutions if they fail to meet the reserve requirements equals twice the prevailing policy rate. From 1 October, 2023, the MNB remunerates excess reserves at the policy rate based on the MNB Decree on the interest rates related to required reserves.