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Czech euro adoption, Glapinski turns hawkish

The Czech government’s debate on adopting the euro took another step forward this week, although we think that the potential benefits of joining the single currency union would be outweighed by the costs. Elsewhere, National Bank of Poland Governor Glapinski was a lot more hawkish than we had anticipated at his press conference on Thursday, which suggests that the risks to our interest rate forecast have titled further to the upside.

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