By Krisztina Than and Gergely Szakacs
BUDAPEST, Sept 24 (Reuters) – Hungary’s central bank unexpectedly raised the interest rate on its one-week deposit facility NBHK by 15 basis points to 0.75% on Thursday, saying the move was aimed at preventing a rise in inflation risks.
The rate hike at Thursday’s deposit tender came two days after the National Bank of Hungary kept all of its main interest rates unchanged at a rate-setting meeting.
The central bank said on Thursday it was committed to maintaining price stability even amid the coronavirus pandemic.
“The NBH wants to prevent a rise in inflation risks due to the current uncertain environment, and thus decided to raise the rate on the one-week deposit,” it said in a reply to questions.
The bank also said it would monitor short-term market rates closely to ensure that they are “in every sub-market and at all times” consistent