Economics

East Europe Has Reason to Lift Interest Rates But Probably Won’t

  • Poland, Czech Republic and Romania seen holding fire this week
  • Inflation is above official targets in all three countries
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The European Union’s biggest eastern economies have something that’s eluded their western neighbors for some time: a strong dose of inflation. But even as price growth bursts through official targets, central banks in the ex-communist region are loathe to raise borrowing costs.