We have argued for some time that the pace of monetary easing across the region would slow as concerns about financial stability weigh on policymakers’ minds. This seems to have been borne out by recent statements from Central Banks. But equally, rate hikes are unlikely - at present a few extra basis points of yield are unlikely to attract a huge inflow of foreign capital. We are sticking to our long-held view that interest rates will fall to record lows, although the pace of cuts will be gradual. Policymakers in Hungary and Romania will remain particularly cautious.
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