IMF advises tighter monetary policy in some Eastern European economies due to higher underlying inflation.

IMF says many emerging European economies need a tight monetary stance due to stronger underlying inflation in central, eastern, and southeastern Europe than in advanced economies. This means central banks in the region may need to maintain a tighter monetary policy than the European Central Bank. Central banks like Hungary, Poland, and the Czech Republic have begun lowering interest rates, while Romania's central bank has held off on rate easing.