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Economic growth to accelerate in 2011; supplyside factors complicate monetary policy outlook in the region

Regional Economics & Strategy

31 Ιανουαρίου 2011
After exiting recession last year, economies in New Europe are expected to perform better in 2011. Naturally, the magnitude of the rebound is going to remain broadly uneven and subject to downside risks. With respect to our strategy, fiscal concerns are also likely to weigh on the zloty further ahead. Along these lines we prefer to stay sidelined on the EUR/PLN at current levels. Separately, we would also enter short positions in EUR/RSD at the current 103-104 levels, with a target of 98.40 in a 3 to 6 months horizon.
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