What more can policymakers do?

The recent tightening of virus containment measures across the region will push back the economic recovery well into 2021 and means that policy support will need to be stepped up before, as seems likely, an effective vaccine is distributed next year. But the scope for interest rate cuts is limited and only a select few countries will expand unconventional tools. Fiscal support will probably be smaller than in the spring.
Liam Peach Emerging Markets Economist
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In view of wider interest, we are sending this Emerging Europe Economics Update to clients of the FX Markets service as well.

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