Hungary Cuts Inflation Target to Support Euro Adoption

Hungary's central bank lowered its inflation target to 2.5% from 3%, citing that it will anchor inflation at lower levels and support euro adoption requirements.

The move has boosted investor appetite for Hungarian bonds, which have outperformed their Polish and Romanian peers this year.

Foreign investors have poured $13.5 billion into the local bond market in 2023, with $10 billion coming after Peter Magyar's April election victory.