New monetary policy tools in Hungary introduced to wean country off external debt

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The Central Bank of Hungary said yesterday it will overhaul its monetary policy framework in a bid to increase bank pruchases of forint-denominated sovereign bonds - a move that appears to be part of a larger government strategy to reduce Hungary's dependency on funds denominated in foreign currency.

The central bank said it would replace two-week repo ‘bills', its "main policy instrument" for setting short-term interest rates, with a deposit facility on August 1. Unlike the current two-week bil

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