Turkish lira, Russia’s vaccine, virus cases in Hungary

The pressure on the Turkish lira this week as the risk of EU sanctions continued to rise has prompted a further tightening of monetary conditions, but an outright hike to policy rates at next week’s MPC meeting is highly unlikely. Meanwhile, the early results of Russia's coronavirus vaccine development suggest that the road to an effective vaccine will be long and bumpy. Finally, the rapid increase in coronavirus cases in Hungary increases the risk of a severe virus outbreak which would slow the pace of the recovery.