MNB seeks closer alignment with ECB, lowers inflation target
Monetary policy decisions will also be reduced from 12 to eight each year from 2027
Central Bank of Hungary (MNB) has cut its inflation target from 3% to 2.5% and announced a change in its meetings schedule.
Mihály Varga, the bank’s governor, announced the changes on September 22 alongside a decision to hold the policy rate at 5.5%. The decisions to hold rates and lower the inflation target were first reported by Bloomberg on September 3, based on a leak.
Varga said that from 2028, the MNB’s inflation target would be 2.5% with a one percentage point tolerance band, down from 3%
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