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Central bank meetings, Slovakia election, Q3 Outlook

The Hungarian and Czech central banks maintained fairly hawkish communications at their meetings this week, but we still think that interest rates will fall sharply in both countries by mid-2024. That said, fiscal developments support our view that interest rates will ultimately need to stay higher for longer in Hungary. Elsewhere, Slovakia’s parliamentary elections take place this Saturday, which could result in the formation of a government that is less supportive of Ukraine. And, in case you missed it, we published our Q3 Emerging Europe Economic Outlook.

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