Inflation and interest rates will fall across Central and Eastern Europe (CEE) in 2024 and an economic recovery is likely to take hold across the region. But the task of bringing inflation back to central banks’ targets will take time and we think that monetary policy in several countries will remain tighter than is widely assumed into 2025, including in Poland and Hungary. Elsewhere, growth cycles in Russia, Israel and Turkey are at different stages, but one common theme is that inflation risks are likely to stay high across the board.
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