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CEE easing cycles shifting down a gear

The Hungarian central bank’s decision to opt for a smaller interest rate cut at its meeting this week fits into a broader theme that policymakers in parts of the EM world are moving towards a slower pace of monetary easing. In Central and Eastern Europe (CEE), we think the scope for interest rate cuts over the second half of this year is generally limited, although the Czech central bank may ease policy more than others in the region.

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