Press release on the Monetary Council meeting of 12 July 2022 | MNB.hu
Central bank: mnb | Type: statement | Date: 2022-07-12

12 July 2022
At its meeting on 12 July 2022, the Monetary Council reviewed the latest economic and financial developments and decided on the following structure of central bank interest rates with effect from 13 July 2022:
Central bank instrument
Interest rate
Previous interest rate (percent)
Change (basis points)
New interest rate (percent)
Central bank base rate
O/N deposit rate
Central bank base rate minus 0.50 percentage points
O/N collateralised lending rate
Central bank base rate plus 2.50 percentage points
One-week collateralised lending rate
Central bank base rate plus 2.50 percentage points
Consistent with its strategy formulated in June, the Monetary Council considers it necessary that the rise in the one-week deposit rate should be incorporated into the base-rate tightening cycle as soon as possible. Due to the increased challenges, in order to anchor inflation expectations and mitigate second-round inflation risks, it is warranted to raise the base rate to the level of the one-week deposit interest rate. The MNB continues to stand ready to respond quickly and flexibly by setting the interest rate on the one-week deposit instrument if warranted by the rise in short-term risks in financial and commodity markets.
According to today’s decision of the Monetary Council, the central bank base rate was raised by 200 basis points to 9.75 percent. The overnight deposit rate was increased by 200 basis points to 9.25 percent, and the overnight and the one-week collateralised lending rates were increased by 200 basis points to 12.25 percent.
The Bank considers it crucial that short-term rates in every sub-market, particularly in the swap market, and at all times develop consistently with the level of short-term rates deemed optimal by the Monetary Council. To that end, on 8 July 2022, the MNB started the use of swap tenders providing foreign currency liquidity within quarters with an overnight maturity. By maintaining an active presence in the market, the MNB enhances the effectiveness of monetary policy transmission, thereby supporting the achievement and maintenance of price stability.
Monetary Council