Last central bank meetings this year

In Czechia and Hungary, the central banks will hold rate-setting meetings. These will be the last central bank meetings in the region this year. We expect no change in the key policy rate in Hungary (currently at 6.5%) mostly due to the weakness of the Hungarian forint. In Czechia, we assign a higher probability to stability of rates (at 4.0%) as opposed to another rate cut. Poland will release November’s industrial output and retail sales growth, which should indicate more or less accurately how the economy performed in the fourth quarter. Other than that, data on price developments will be released in several CEE countries. We will see the final reading of November’s inflation, and producer prices for November in Czechia, Poland, Slovakia and Slovenia. Finally, some labor market data is due this week, such as the unemployment rate in Slovakia and Croatia and wage growth in Poland and Croatia.