The Turkish central bank’s optimistic inflation forecasts add weight to our view that monetary easing is likely to go too far and will ultimately have to reverse course. Elsewhere, although the rise in Polish inflation to a seven-year high in July has prompted several MPC members to adopt a more hawkish tone, we doubt that this will lead to interest rate hikes. Finally, the threat to Russia from tighter US sanctions has resurfaced this week – these would probably have a greater impact on local financial markets than the real economy.
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