Slow vaccine rollout, Turkey’s S-400s, Czech tightening

The incredibly slow start to vaccination programmes across the region threatens to delay the recovery we had expected from Q2 this year. Meanwhile, signs that Turkey is open to compromise on its purchase of an S-400 missile system may propel a further rally in local financial markets. Expectations for monetary tightening in Czechia have intensified following last week’s hawkish central bank meeting, but we still don’t expect the first interest rate hike until Q1 2022.