Hungary’s inflation target may be due for a reviewBanai recalled that Hungary’s current 3 percent inflation target is higher than the inflation targets of several other European countries and also exceeds the 2.7 percent inflation reference value included in the European Central Bank’s latest convergence report. In light of the government’s intention to adopt the euro, he said it could therefore be appropriate to review Hungary’s inflation target. The deputy governor stressed that achieving and maintaining price stability is also of primary importance for sustainable economic growth. Euro adoption brings both benefits and risksBanai added that adopting the euro has both advantages and potential disadvantages. In the longer term, the pace of Hungary’s economic catch-up would instead depend on the quality of economic policy, he said.