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CBRT dodging inflation duty, Poland’s tax proposals

Turkey’s central bank raised its inflation forecasts this week and Governor Kavcioglu’s comments suggest that policymakers are unlikely to step up to the plate in the fight against inflation. Meanwhile, further details of the “Polish Deal” published this week suggest that policymakers' focus is on increasing demand rather than the economy’s supply potential, increasing the risk of overheating.
Jason Tuvey Senior Emerging Markets Economist
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Emerging Europe Economics Weekly

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Governments in Israel and Bulgaria collapsed this week which may delay support to households over the cost of living. The threat to Bulgaria’s economy is probably greater, as political instability also puts EU fund inflows and the ability to secure gas supplies at risk. Elsewhere, a 30-day grace period for Russia’s government to make interest payments on Eurobonds ends on Sunday. While Russia has signalled that it is willing to make the payments in rubles, this would be a breach of the contract and could mark Russia’s first default on foreign currency debt since the Bolshevik revolution.

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