NBH Rate-setting meeting - Central bank lifts base rate by 100bps, maintains hawkish stance
Today the NBH lifted the base rate by 100bps to
5.40%, in line with the Bloomberg consensus.
The top of the O/N interest rate corridor (O/N lending
rate) was also lifted by 100bps, to 8.40% (the large
gap is due to the fact that the lending rate had been
lifted by 100bps in an extra move on March 8), with the
O/N depo rate moving in tandem with the base rate.
The base rate in itself has remained of secondary
importance in the current monetary framework as (since
November 2021) and the 100bps upward shift of the
top of the interest rate corridor provides the expected
(significant and sufficient 225bps) room for the NBH to
raise the effective policy rate (the 1W depo rate,
currently 6.15%) further. This structure of the toolkit
has not been altered today and it would probably stay
in place at least until the end of H1 2022.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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