The region appears to have come through the energy shock in good shape so far, with economic activity growing strongly in Q2 (Russia and Romania aside) and inflation falling below central banks’ targets in a range of countries. As a result, Emerging Europe is one of the few regions where monetary easing cycles have been underway in recent months, and we think there’s scope for further rate cuts in Hungary, Israel and Russia this year. A window for easing should also open in Turkey provided oil prices stabilise. However, we don’t expect Poland to shift to easing this year and we expect Czechia to buck the trend with another rate hike before year-end.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
