Fears that the recent sell-off in Emerging Europe’s currencies might lead to a pick-up in inflation and put pressure on policymakers to raise interest rates are overstated. Nevertheless, weaker currencies will increase concerns over financial stability in the region, particularly in countries with high FX-debt burdens (Hungary, Romania and to a lesser extent Poland).
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.