BUDAPEST Dec 20 Hungary's central bank will
reduce funds its 3-month deposits further by the end of March
and is ready to loosen monetary conditions further via
unconventional tools if needed, the bank said in a statement on
The Monetary Council decided to set a 750 billion forint
($2.50 billion) cap on the stock of three-month central bank
deposits effective at the end of the first quarter of 2017.
"The Council expects that this decision, consistent with the
gradual steps taken so far, will mean the crowding out of at
least HUF 100-200 billion additional liquidity from the deposit
facility," it said.
Earlier, the bank kept its base rate on hold.
"If subsequently warranted by the achievement of the
inflation target, the Council will stand ready to ease monetary
conditions further using unconventional, targeted instruments,"
($1 = 300.2 forints)
(Reporting by Krisztina Than and Gergely Szakacs)