Turkish lender Yapi & Kredi Bankasi AS says companies would struggle to repay foreign-currency debt were the lira to depreciate at least 20 percent, a level Goldman Sachs Group Inc. predicts it will approach next year.
The Czech central bank began unlimited koruna sales “for as long as needed” to ease monetary policy after inflation slowed to the least in 3 1/2 years. The Czech currency plunged the most since at least 1999.
Poland’s central bank pledged to keep its main interest rate at a record low until at least the middle of next year due to the “moderate” pace of recovery in the European Union’s largest eastern economy.
Eastern European bank funding has improved as financial-market tension in the euro area abated and western lenders with units in the region shifted to local financing, according to Capital Economics Ltd.
Concern that emerging-market central banks are becoming less independent is unjustified, except in Hungary, where the new governor may implement the government’s “growth agenda,” Capital Economics said.
Egypt is betting on aid from its oil-rich Persian Gulf neighbors to spur its ailing economy, ending a two-year pursuit of an International Monetary Fund loan it had touted as vital to regaining investor confidence.