Third quarter GDP data for Central and Eastern Europe (CEE) showed that growth in the region as a whole picked up to a nine-year high of 5.3% y/y. We still think growth will slow in 2018, but today’s data mean the risks to our forecasts lie to the upside. In the meantime, these strong GDP data support our view that interest rates will be hiked sooner and by more than most expect across the region.
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