Monetary base rises by 3.8% m/m to HUF 2,632.3bn in October. The monetary base rose by 3.8% m/m to HUF 2,632.2bn in October, according to the preliminary data of the central bank. The main growth driver was monetary financial institutions’ overnight deposits, which added HUF 76.7bn m/m to HUF 99.8bn. The other two components of M0 also increased – currency in circulation was up by HUF 7.8bn, while MFIs’ current account balances rose by HUF 12.6bn to HUF 618.5bn in October. The NBH commented that the surge in overnight deposits was linked to credit institutions’ temporarily liquidity problems and thus it was unlikely to be sustained. The annualised m/m growth of M0 accelerated to 24.8% in October compared to 20.6% in September. The central bank added that the net position of the government deteriorated by HUF 125.3bn in October on the back of HUF 129.2bn decline in the sub-sector’s deposits and HUF 3.9bn drop in the loans outstanding.