Economy
Hungarian cenbanker pledges no rate change until end-2020
Márton Nagy stressed that the yield-suppressing impact of the central bank tools is manifested in government security yields or lending rates. Besides swap deals and asset purchases, this is also served by the central bank’s intention to keep the current base rate on hold until the end of 2020 and current BUBOR rates up until the end of 2019, he added.
Nagy added that the MNB had bought 74 billion forints worth of mortgage bonds from domestic banks under the latest iteration of its monetary easing campaign, which also includes new interest rate swaps to curb yields on longer-dated bonds. Nagy hopes that as a result of the tool, banks will be able to finance more and more housing loans with interest rates fixed for longer and longer terms.
The central bank aims to increase the ratio of fixed-rate loans, firstly at new mortgages and then at existing ones. As regards the latter, the question of replacement and bank changes have occurred therefore this is a much more complex tax. There are several cost items and impediments here - the cost of changing lenders could reach HUF 250,000-300,000 in the case of an average mortgage, he added.
Nagy added that the MNB had bought 74 billion forints worth of mortgage bonds from domestic banks under the latest iteration of its monetary easing campaign, which also includes new interest rate swaps to curb yields on longer-dated bonds. Nagy hopes that as a result of the tool, banks will be able to finance more and more housing loans with interest rates fixed for longer and longer terms.
The central bank aims to increase the ratio of fixed-rate loans, firstly at new mortgages and then at existing ones. As regards the latter, the question of replacement and bank changes have occurred therefore this is a much more complex tax. There are several cost items and impediments here - the cost of changing lenders could reach HUF 250,000-300,000 in the case of an average mortgage, he added.
