Emerging Europe Economics

Emerging Europe Economics Weekly

18 January, 2019

Hawks in Hungary, Erdogan’s enhanced economic powers

Hawkish comments from Hungary’s MPC this week support our view that monetary policy will be tightened by more than is priced into markets. Meanwhile, emergency economic powers granted to Turkey’s President Recep Tayyip Erdogan heighten the risk of policy missteps during future periods of economic stress. And the further widening of Romania’s current account deficit suggests that a sizeable currency adjustment lies in store over the course of this year.

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