EME Macro/Strategy: macro all-in-one (16-22 September)

Last week, the Fed’s policy decision took the spotlight, with a dovish 50bps cut, accompanied by signals of steeper rate cuts across the next two years. Regional elections took place in the Czech Republic over the weekend, resulting in a landslide victory for former PM Babis’ opposition ANO party. In Türkiye, the MPC kept the policy rate on hold, but made a slight adjustment to the text, to remove the possibility of further outright hikes. In Romania, budget execution worsened further in August, which led to a downward revision of this year’s deficit target to 6.9% of GDP, from the original target of 5% of GDP. August’s budget execution data were also released for Poland, revealing a mild widening of the deficit, but with offsetting positive news on cooling core inflation and steady labour market dynamics. Lastly, we discuss some and political highlights for Georgia and Kazakhstan.