Economics
East Europe Keeps Rates on Hold as Euro-Area Weakness Prevails
- Polish, Czech, Romanian, Serbian borrowing costs unchanged
- Policy makers voice concern over global economic outlook
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Central banks in eastern Europe kept borrowing costs unchanged as expected as the euro area slowdown outweighed inflation outlooks.
With the European Central Bank facing dwindling chances of being able to raise rates this year, policy makers in Poland, the Czech Republic, Romania and Serbia took a wait-and-see approach to asses risks coming from their biggest export market. That’s rare unity in a region that saw diverging monetary paths last year, ranging from a series of rate hikes in the Czech Republic to cuts in Serbia.