Wage pressures will take time to alleviate in CEE

Signs of softening labour markets across Central and Eastern Europe support our view that intense wage pressures in the region will ease in the coming months. Even so, we still think that wage growth will generally remain above levels consistent with central banks’ inflation targets over the coming year. This helps to explain why, while they will be cut, we expect interest rates to remain above neutral out to 2025. 

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