Hungary Central Bank Halts Rate Cuts as Inflation Target Slashed

Hungary's central bank is poised to put its interest rate cut campaign on hold as policymakers consider lowering the country's highest inflation target in the European Union. The National Bank of Hungary will likely keep the benchmark interest rate at 5.5% when it meets on September 22, according to a person familiar with the matter.

This decision comes after three consecutive monthly quarter-point cuts. The move is aimed at taming inflation, which has been running high in Hungary. The forint surged against the euro following the news.