The Poland-EU dispute over the rule of law reached a breaking point this week and raises the threat of potential fines and a significant delay to receiving EU recovery funds, dimming an otherwise positive economic outlook. Meanwhile, fiscal policy looks like it will provide a slightly bigger boost to growth in Russia than we had expected over the next year, but we do not think this will threaten the government's long-standing aim for macro stability. Finally, developments over the past week suggest that officials in Turkey are taking their eye off inflation and preparing the ground for an interest rate cut.
CE Spotlight 2021: The Rebirth Of Inflation?
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