BUDAPEST, Sept. 22 (Xinhua) -- Hungary's central bank will lower its medium-term inflation target from 3.0 percent to 2.5 percent from Jan. 1, 2028, the Monetary Council of the National Bank of Hungary (NBH) said Tuesday.
The tolerance band of plus or minus 1 percentage point around the target will remain unchanged, the council said in a statement released after its monthly policy meeting.
The council said a multistep review of the monetary policy framework, launched at the beginning of the year, found that the framework was in line with international best practices, but the inflation target was higher than that of the euro area and the region.
"The state of nominal and real economic convergence supports lowering the inflation target," the council said.
The council added that lowering the inflation target would also support Hungary in meeting the requirements for adopting the euro.
At Tuesday's meeting, the NBH kept the central bank base rate unchanged at 5.50 percent. The overnight deposit rate remained at 4.50 percent, while the overnight collateralized lending rate stayed at 6.50 percent. ■