Introducing our Taylor Rules for Central and Eastern Europe

The combination of strong growth and rising inflation in Central and Eastern Europe (CEE) has shifted attention to when and how policymakers might respond. To help answer this, we’ve created Taylor Rules for the region’s economies. These suggest that tightening cycles are likely to commence over the next year and that, while the pace of tightening is likely to be gradual by past standards, policy interest rates look set to rise by more than most expect.