Emerging Europe Weekly: Hawks flying in CEE, growing pressure on the CBR?

Communications from central banks in Poland and Czechia this week were both on the hawkish side, but we expect a continued divergence in monetary policy over the coming year as interest rates remain on hold in the former while Czech policymakers lower rates to neutral. Next week, we expect the Russian central bank (CBR) to leave rates on hold, and we'll be watching closely for further evidence that the central bank is feeling pressure from politicians and businesses to lower interest rates, despite high inflation.