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Russia aside, oil drop will benefit Emerging Europe

The renewed slide in oil prices has been an important factor behind the latest deterioration in sentiment towards EMs over recent weeks. However, with the obvious exception of Russia, most countries in Emerging Europe stand to gain from lower commodity prices. The latest drop in oil prices supports our view that for the majority of countries in the region, 2016 is likely to be another year of low inflation, loose monetary policy and continued strong growth in domestic demand.

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