Benchmark
ECB’s ‘Fits-All’ Rate Policy May Be Wrong Size for Baltics
Inflation in Estonia, Latvia and Lithuania is more than double the bloc’s average
Tins of caviar products sit on display at a food stall in the central market in Riga, Latvia, on Saturday, Jan. 7, 2017.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
For some euro-region nations, super-loose monetary policy may have outstayed its welcome.
Inflation in the three Baltic countries is the currency bloc’s fastest and more than double the average rate. Lithuania’s reached the highest in six years this month. Meanwhile, economic growth is also surging and – while not currently overheating – Estonia, Latvia and Lithuania are uneasily recalling the boom-bust cycle that sank them back in 2008.