BUDAPEST, March 24 (Xinhua) -- At its meeting on Tuesday, the Monetary Council of the Central Bank of Hungary (MNB) decided to keep its key lending rate unchanged at a record low of 0.9 percent in line with expectations and despite a steady weakening of the Hungarian currency (forint) against the euro and other currencies.
The bank also left its overnight central bank deposit rate unchanged at minus 0.05 percent.
The MNB lowered its base rate to the current level in May 2016. Since March 2016, it has also maintained a negative rate for overnight deposits. The current rate of minus 0.05 percent came into effect on March 27, 2019.
"The Monetary Council closely monitors and continuously assesses incoming data and the macroeconomic and financial market effects of the coronavirus epidemic," the bank said, as the Hungarian currency has been on a weak pathway against the euro.
"Providing the necessary level of liquidity is of paramount importance in addressing the epidemic challenges," the MNB added.
On Tuesday, the forint stood at 350.33 against the euro, and at 322.74 against the U.S. dollar.
According to the latest available figures, the inflation rate in Hungary was 4.4 percent year-on-year in February, exceeding the MNB-supported three percent threshold.
The MNB's single anchor is inflation, and its primary objective is to achieve and maintain price stability, the bank underlined.
