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Delta fears, Hungary-EU spat, more NBU tightening

Concerns have grown over the past week about the spread of the Delta variant of COVID-19 but high vaccine coverage across much of the region has reduced the risk that policymakers will be forced to reimpose harsh restrictions on activity. Meanwhile, Hungary’s latest spat with the European Commission over the rule of law raises the possibility of delays to EU fund inflows. Finally, Ukraine's central bank delivered a surprise rate hike this week and its communications signalled that further monetary tightening lies in store.

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