Monetary policy: Hungary takes important step towards introducing the euro: central bank adjusts inflation target
Since the change of government in Budapest, Prime Minister Péter Magyar has been pushing ahead with his ambitious plan to introduce the euro. Now the central bank is also on board.
Hungary is moving towards adopting the Euro, with the country's central bank announcing it will lower its inflation target from 3.0% to 2.5% by 2028. This move is seen as a significant step towards meeting the European Central Bank's inflation target of 2%. The Hungarian central bank's governor, Mihaly Varga, expects the reform to lead to cheaper credit for the economy and a more stable national currency. The bank kept its key interest rate at 5.5%, compared to the ECB's rate of 2.5%.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
