CEE inflation worries mount, Turkish lira closing in on 10

Inflation data out of Central and Eastern Europe this week provided for ugly viewing and with headline rates likely to rise further above central bank's targets in the coming months, this will keep the onus on policymakers to raise interest rates aggressively. Meanwhile, it's been another awful week for the Turkish lira which is closing on the psychologically important level of 10/$. Worries about domestic economic policymaking are growing and will continue to do so next week if the central bank delivers another large interest rate cut, as we expect.