The global financial landscape is changing, and financial conditions have tightened: How is the path towards normalisation of the monetary policies of the Federal Reserve System and, prospectively, the European Central Bank (ECB) influencing financial conditions and monetary policies in the CESEE countries? What have been the major spillovers from changing global financial conditions? How have they differed depending on the different monetary policy frameworks and exchange rate regimes in place? Is there any dissimilarity, in terms of impact on the region, between the policies of the Federal Reserve System and the ECB? What is the impact on capital flows to the region? What are the potential implications for economic growth and for the paths towards euro adoption? What are the prospects for further financial development in the region? What are the resulting policy challenges and what options do CESEE countries have in order to address them?