Ukraine optimism overdone, robust growth in CEE

Ukraine’s President Volodymr Zelensky has hit the ground running in his bid to push key reforms through the Rada. Markets have taken these developments, as well as the strong Q2 GDP figures, positively but we think they have probably got ahead of themselves. Meanwhile, data released over the past week suggest that the Central European economies made a robust start to the third quarter, supporting our view that most central banks are unlikely to follow their peers in the rest of the emerging world in cutting interest rates.