The more hawkish communications from Hungary’s MPC this week support our long-held view that ultra-loose monetary policy will be reined in this year. The hawkish shift caused market expectations for interest rates to rise sharply, although we still think that there will be more tightening than markets are currently pricing in. Meanwhile, a victory for President Erdogan and the AK party in Sunday’s Turkish elections would add to reasons to think that the long-term outlook will be marked by slower growth, higher inflation and a weaker currency.
This is the first edition of a new Emerging Europe Economics Weekly publication that is being added to your subscription.
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