Notices on the terms and conditions related to changes in monetary policy instruments are released

Budapest, 10 June 2014 - The Magyar Nemzeti Bank is devoted to reduce further the external vulnerability of the country and to strengthen the financing of the economy based on domestic sources (self-financing). In line with this aim, the central bank will expand the range of monetary policy instruments from 16 June. Within this, a new forint interest rate swap (IRS) instrument will be introduced, the first tender will be held on 26 June 2014. Furthermore, the range of potential instruments will be expanded by a long-term collateralised loan and by a securities swap transaction. The latter two instruments will be announced based on the prevailing market conditions, thus the MNB is closely monitoring the state of financial markets, primarily the evolution of liquidity. As a part of the self-financing program, the form of the main central bank instrument will be changed: the two-week MNB bill will be replaced by a two-week deposit facility from 1 August.

In the elaboration of the instruments – within certain limits – the comments and suggestions of bank were taken into account, with the aim that the new instruments could foster the accommodation of banks to the self-financing program. The access conditions and the detailed parameters of the new monetary policy instruments are described in the Notices on the terms and conditions.

Magyar Nemzeti Bank

Notice on the terms and conditions of three and five-year floating rate forint interest rate swaps

Notice on the terms and conditions of the three-year floating rate collateralised loan transaction linked to the central bank base rate

Notice on the terms and conditions of securities swap transactions

Vissza a tetejére

The primary objective of the MNB shall be to achieve and maintain price stability. (...) Without prejudice to its primary objective, the MNB shall support the maintenance of the stability of the system of financial intermediation, the enhancement of its resilience, its sustainable contribution to economic growth; furthermore, the MNB shall support the government’s economic policy and its policy related to environmental sustainability, using instruments at its disposal.