The Monetary Council also decided on Tuesday to raise the O/N deposit rate by 100 basis points to 11.25% and the O/N and one-week collateralised loan rates by 100 basis points to 14.25%. The O/N deposit rate and the collateralised loan rate mark the bottom and the top, respectively, of the central bank鈥檚 鈥渋nterest rate corridor鈥�. The decision was in line with expectations.
鈥淭he further rise in inflation and persistent inflation risks warrant the decisive continuation of the tightening cycle,鈥� the Council reiterated in a statement released after the meeting. 鈥淢aintaining tighter monetary conditions for a longer period is warranted to manage increasing second-round inflation risks resulting from persistently negative supply effects,鈥� they added.
The Council reiterated that the tightening cycle will continue 鈥渦ntil the outlook for inflation stabilises around the central bank target in a sustainable manner and inflation risks become evenly balanced on the horizon of monetary policy鈥�.
hungarymatters.hu
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