Thoughts on a jam-packed week for monetary policy

A busy week for monetary policy highlighted the growing divergence among the region's central banks. On the more dovish side, Poland’s appears in no rush to shift to interest rate hikes, while we think Turkey’s central bank is moving closer to resuming its easing cycle, most likely in October. By contrast, Russia’s central bank has turned more cautious, as it paused its easing cycle this week, and a pause in Hungary now looks increasingly likely later this month. At the more hawkish end, the Czech central bank is likely to hold rates steady next week, but the arguments for another hike remain strong.