The European Bank for Reconstruction and Development on Sunday cut growth forecasts for Ukraine, Kazakhstan, and Romania – three key countries for emerging markets investors – because of difficulties arising from the global credit crunch and mounting inflation.

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The president of the EBRD on the credit crunch, the dangers of growing inflation and the economic prospects for Russia

While the EBRD, the multilateral bank for eastern Europe and the ex-Soviet Union, raised its 2008 growth forecast for the region as a whole, saying it was pulling through the global turmoil better than expected, it singled out the three countries, plus impoverished Tajikistan, for significant reductions.