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Hungary's central bank to cut frequency, size of 3-month deposit tenders

Magyar NemzetiBank's monetary council decided to reduce the frequency of itsthree-month deposit tenders and impose limits on their size, to avoid sappingliquidity from the interbank and government securities markets.

From August, the three-month tenders will be monthly insteadof weekly, and from October the central bank will impose a limit on the amount bankscan place in them. Details of the limit, the auction technique and allocationmechanism will be announced in September.