Emerging Europe Watch
Policy tightening set to resume in Poland (Jan 08)
The focus this month will be on Poland, where we expect the National Bank to raise interest rates by 25bps in response to rising inflationary pressures. We expect policymakers elsewhere in the region to remain on hold, but see further interest rate hikes in the Czech Republic as early as next month and further cuts in Hungary towards the second half of this year.
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