Hungary has already presented projects using 50% of the country’s available EU funds until 2020, while this ratio is only 20% in Poland and 15% in the Czech Republic, the investment bank found.

The Czech central bank is a ‘hawk’, while the Hungarian central bank is a ‘dove’ because it rejects the strengthening of the forint.

The MNB will go full throttle to stimulate growth but it may run out of available sources, BofA warns.

The labour supply shortage prevails over Eastern Europe, but with varying degrees. Hungary is hit the hardest, where wage increases reached 11% in the first quarter, well above the 5.3% in the Czech Republic and 4.5% in Poland.

Source: Hungary Around the Clock

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