Emerging Europe Economics

Emerging Europe Economics Weekly

15 February, 2019

CEE core inflation rising, CBRT considering backdoor easing?

Data released this week showing a pick-up in core inflation in Hungary and the Czech Republic support our view that, unless the activity figures take a sharp turn for the worse, central banks in both countries are likely to tighten monetary policy. Elsewhere, remarks from Turkey’s central bank governor suggested that policymakers may be contemplating ways to support the struggling economy without resorting to outright interest rate cuts.

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