The tax hikes announced by the Russian finance ministry this week will help to plug the hole created by the growing military budget, but won’t deliver the scale of fiscal tightening needed to stop the economy from overheating. Meanwhile, the Bank of Israel’s hawkish commentary when it left interest rates on hold this week underlines the pressure policymakers are under due to high military spending and we think the door for further rate cuts this year has probably now closed. Finally, the European elections taking place next week may give insights into upcoming national elections this year, including the strength of support for the far-right in Romania.
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