Economics
Hungary Pushes the Limits of Central Bank Asset-Purchase Plans
- Central bank to buy bonds of company its foundation owns
- ECB has expressed monetary-financing concerns in the past
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Hungary’s central bank is about to take its $2.5 billion asset-purchase program to the next level as it prepares to buy the bonds of a company owned by one of its entities.
The debt sale under the central bank’s plan, flagged in a corporate filing, may further blur what’s become a hazy boundary on what central banks around the world can and can’t do to buoy economic activity during the global coronavirus pandemic.