Hungarian central bank is launching its version of LTRO (long term repo operation). It is going to offer 2-years loans to the banking sector in exchange for collaterals. Simultaneously it should start to purchase mortgage bonds. Both measures can be seen as version of QE aimed at easing domestic financial conditions. The fact that banks may have more money at their disposal was generally welcomed and appreciated on the bond market. Also the forint initially gained in reaction and outperformed easily all the regional counterparts. On the negative side the NBH minutes revealed that four rate setters appointed by the government had voted against the Governor and prevented the board from further interest rate hikes. That may give IMF further arguments in talks about the independence of Central Bank.