The market continues to question the speed of the monetary policy adjustments – both on the way up (U.S., U.K., Poland), and on the way down (China).

Some EM central banks chose to accelerate the pace of rate hikes – but Poland is not one of them. China’s weak services gauges question a lack of demand-side policy support.

 

The hawkish expectations dominate for today’s U.S. Federal Reserve’s meeting. But the Fed was almost upstaged in the morning by India’s surprising and unanimous 40bps inter-meeting rate hike.

There are a lot of questions about EM peak rates in the run up to the Fed’s decision tomorrow – especially as this week’s rate-setting meetings in EM feature a number of “borderline” cases.

Poland’s unusually large inflation surprise questions the suggested pace of rate hikes. China aims to step up policy support to prop up growth, but the emphasis is once again on the supply side.

A growth hiccup in the U.S. raised additional concerns about EM performance going forward.