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Easing-cycles still have further to run (Aug 09)

Hungary and Romania are both likely to continue to capitalise on the current favourable conditions in financial markets by cutting interest rates again in their forthcoming meetings. Elsewhere, although we still see room for further monetary-easing in Turkey, Poland and the Czech Republic, rates are clearly nearing their trough. However, we remain unconvinced that the rate hikes that are currently priced into the market over the course of next year will materialise.

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