Our Emerging Europe Chart Pack has been updated with the latest data and our analysis of recent developments.
The paring back of expectations for interest rate cuts in advanced economies this month has generally come alongside an upward revision to interest rate expectations across Emerging Europe. However, we think analysts may still be overestimating how far interest rates may be cut in some parts of the region. There are signs of an economic recovery taking hold in Central and Eastern Europe, and inflation looks set to rise back above central bank target ranges in some countries by year-end. Meanwhile, Turkey’s economy continues to run hot and inflation pressures remain strong, suggesting rates won’t be cut anytime soon.
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