Based on the Monetary Council’s decision, the MNB’s policy instrument is the required reserves. Credit institutions licensed to operate in Hungary and branches of foreign credit institutions in Hungary must deposit a minimum reserve at the central bank equal to 10% of their funds with maturities less than two years. The required minimum reserves must be met on a daily and monthly average basis.

The rules related to the required reserve system are set out in the MNB Decree on the Calculation, Method of Allocation and Placement of Required Reserves, the MNB Decree on the required reserve ratio, and the MNB Decree on the interest rates related to required reserves.

Relevant documents for reference