Central banks and inflation dominate next week's agenda. With the ECB only reducing its tightening pace, the Fed should announce one final rate hike. In Czechia, it will be all about new CNB forecasts with GDP release in focus too.
Global growth momentum will be in the spotlight next week as both US and EA Q1 GDP figures will be released. Central banks in CEE are expected to stay the course - with small adjustments - whereas a minor breakthrough is expected in the Bosnian political impasse.
The latest IMF forecasts point to sticky inflation. In line with this, persistent core inflation was the key message this week which brought some tailwind behind the Fed's / ECB's mantra of higher for longer putting an end to the recent downward trend in yields.
It's inflation week once again! In CEE, inflation is set to decelerate as base effects kick in, especially in energy prices. For financial markets, the US inflation print is key. Headline inflation falling but core inflation remaining high is the pattern to expect.
According to surveys, the service sector has recovered, but industrial activity is still weak in many countries. Strains on financial markets have decreased. In CEE, we expect no surprises and changes from central banks in Poland and Romania, but a 25bp hike in Serbia next week.