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Tightening in Hungary and Turkey, Poland’s ‘fur crisis’

Concerns about currency falls and the inflation outlook prompted central banks in Hungary and Turkey to raise interest rates this week but while we think this will ultimately be reversed in Hungary, tighter monetary policy is here to stay in Turkey. Meanwhile, the future of Poland's government descended into fog this week but reports that a new system of power that gives the leader of PiS more influence within government is likely to do enough for now to take early elections off the table.

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