Zoltán Kurali on the MNB’s monetary policy framework review
Hungarian deputy explains the rationale behind cutting the target from 3% to 2.5%, retaining a tolerance band and reducing meeting frequency
Reading through the analysis in September’s inflation report, it seemed that a lot of the material supporting the change to 2.5% was based on the idea of continuing alignment between Hungary and the eurozone. To what extent was eurozone accession a motivating factor in implementing this now?
Changing the policy target from 3% to 2.5% was part of a regular review process that we would have done anyway. The first reason was to align with our regional peers. The second was that the Hungarian economy
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