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Countries In-Depth

Market Divergences Within Central Europe

by Rajeeb Pramanik, India, ASEAN, and EMEA Strategist  

The disinflation process is over in Poland and Hungary. Only the Czech Republic will see its core inflation meet its central bank target this year. The reason is much tighter labor market dynamics in the first two. Investors should continue to short a basket of CE3 currencies vis-à-vis the US dollar.

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