Low Inflation Still No Threat to CEE

Businessn.a. ♦ Published: March 19, 2014; 09:45 ♦ (Vindobona)

Currencies in CEE should not be affected by low inflation, according to Erste Group.

CEE countries are not concerned by low inflation. / Picture: © Vindobona.org

Croatia: Inflation hovering around the deflation zone is set to provide more maneuvering space on the depreciation side, though supportive supply side developments play an important role in the subsiding inflation pressures. Putting that into the exchange rate perspective, we are expecting to see the usual seasonal pattern on the FX market and the HRK advancing to the…