Economy
Hungary central bank to offer MIRS at fixed-price tenders
The central bank held the first tender for the new instrument last Thursday at variable prices, but will use a fixed price starting from the next MIRS tender. Allocation will be based on the balance sheet total of banks, similar to the method used for three-month deposit tenders.
At last week’s tender, the yield-orienting role of the instrument did not fully prevail due to the characteristics of the variable-price method used, as the MNB was not able to accept bids at lower yields amidst the outstanding demand, the central bank said in its statement.
At its session on November 21, 2017, the central bank’s Monetary Council set the maximum allotted amount of the MIRS instrument at HUF 300 billion for the first quarter of 2018.
At last week’s tender, the yield-orienting role of the instrument did not fully prevail due to the characteristics of the variable-price method used, as the MNB was not able to accept bids at lower yields amidst the outstanding demand, the central bank said in its statement.
At its session on November 21, 2017, the central bank’s Monetary Council set the maximum allotted amount of the MIRS instrument at HUF 300 billion for the first quarter of 2018.
