Inflation across Central and Eastern Europe (CEE) has surprised to the downside in recent months and is now below central banks’ targets. While we expect inflation to rise by year-end, it will follow a lower path than we had previously thought. In response, we now expect the policy rate in Hungary to be cut from 6.25% to 5.50% by end-2026 (6.00% previously) and in Czechia from 3.50% to 3.25% (previously no cuts). Both of these forecasts are below the consensus. We continue to expect 50bp of cuts in Poland.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services