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Hungary May Lower 3% Inflation Target to Meet Euro Criteria

8/10/2026

Summary

Story summary

The Hungarian National Bank (MNB) said it will meet euro-area entry conditions and may cut its 3% inflation target.
Deputy Governor Peter Beno Banai said inflation could stay below 2% this year and that the 3% target exceeds the ECB’s 2.7% reference.
He listed euro-adoption criteria—sound public finances, declining debt-to-GDP, low inflation and exchange-rate stability—and warned that adopting the euro alone will not speed convergence, which depends on policy quality.

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Story summary

The Hungarian National Bank (MNB) said it will meet euro-area entry conditions and may cut its 3% inflation target.
Deputy Governor Peter Beno Banai said inflation could stay below 2% this year and that the 3% target exceeds the ECB’s 2.7% reference.
He listed euro-adoption criteria—sound public finances, declining debt-to-GDP, low inflation and exchange-rate stability—and warned that adopting the euro alone will not speed convergence, which depends on policy quality.