The MNB’s most important instrument is the two-week MNB-bill. The rate on the two-week MNB-bill serves as the policy rate that reflects best the monetary policy stance and its changes. The Monetary Council, the main decision making body sets the key policy rate. By changing the base rate the central bank affects its operating target, the 3 month money market rates and indirectly the general economic developments. The MNB-bill is available once a week through a fixed rate auction for the counterparties, and all bids are accepted by the central bank.
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