24 November 2008

At its meeting on 24 November 2008, the Monetary Council reduced the reserve ratio from 5% to 2%, in order to support domestic credit institutions’ forint liquidity. Credit institutions will be required to hold minimum reserves calculated on the basis of the new reserve ratio for the first time during the December 2008 maintenance period. With the Monetary Council’s decision, the reserve ratio applied by the Magyar Nemzeti Bank is now equal to the reserve ratio applied by the European Central Bank.

The Magyar Nemzeti Bank has made every effort to help domestic credit institutions to have access to the amount of forint liquidity that they need in the current market environment. Following the introduction of central bank two-week and six-month collateralised lending facilities on 20 October 2008, the reduction in the reserve ratio serves to increase free forint liquidity available for credit institutions.

MAGYAR NEMZETI BANK