The Monetary Council reviewed recent economic and financial developments. In accordance with its meeting schedule, the Council did not discuss changing the base rate; however, at its current meeting a decision was taken to widen the interest rate corridor and make it asymmetrical. Based on its current decision, from 1 December, the Monetary Council increased the overnight deposit rate to 1.60 percent, while the overnight and the one-week collateralised lending rate were increased to 4.10 percent.
The primary objective of the Magyar Nemzeti Bank (MNB) is to achieve and maintain price stability. The Monetary Council indicated in the press release on its November decision that short-term risks in financial and commodity markets had increased recently, and the Bank intended to respond to these risks quickly and to the extent necessary. The interest rate on the one-week deposit has risen above the base rate in recent weeks. Widening and setting the interest rate corridor asymmetrical upwards is an integral part of the strategy of the new phase of monetary policy. In order to achieve and maintain price stability, it is highly important that the central bank has the appropriate monetary policy room for manoeuvre. This ensures the effective management of risks arising from the rapidly changing environment.
Budapest, 30 November 2021
MAGYAR NEMZETI BANK
Monetary Council