(Updated at 0935 GMT)
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Turkish end-2024 CPI seen at 43.14% - central bank survey
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Polish lawmakers to start central bank boss probe this
month
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MSCI EM stock index climbs 0.6%, FX index up 0.5%
By Johann M Cherian
Sept 13 (Reuters) - Currencies and stocks across most
developing economies crept up on Friday amid hopes of imminent
U.S. monetary easing, while investors awaited a rate decision
out of Russia and assessed Turkey's year-end inflation
forecasts.
MSCI's index tracking emerging market equities rose 0.6% and
was on track for weekly gains of around 0.6%, its biggest in
three. The currencies index edged up 0.5% on
Friday.
Data from Bank of America showed emerging market debt saw
outflows for a seventh straight week, while stocks saw inflows
for a 15th straight week, at $2.2 billion.
Investors assessed U.S. data through the week to gauge the
outlook on the Federal Reserve's monetary policy, that could
determine the trajectory of the dollar. The world's most
influential central bank is expected to cut interest rates next
week.
Meanwhile, Russia's rouble depreciated 2% against the
dollar ahead of a central bank policy decision that is expected
to leave borrowing costs at 18%, as signs of a cooling economy
emerge.
Trading in major currencies in Russia has shifted to the
over-the-counter market, obscuring price data.
The yield on Turkey's short-term bonds rose 29
basis points, while rate-sensitive bank stocks fell
0.6% as a survey showed expectations that inflation would slow
to 43.14% by year-end, a rate that is still above the central
bank's 36% target.
In central and eastern Europe, Poland's zloty was
little changed after data confirmed an earlier reading that
showed inflation in August stayed at 4.3%. The currency has
outperformed peers in the region year-to-date as the central
bank has left interest rates unchanged this year.
"The persistence of core inflation means that the (monetary
policy committee) will not be in a hurry to start reducing
interest rates, and the monetary policy easing cycle itself will
be cautious and less aggressive than the market estimates,"
analysts led by chief economist, Rafał Benecki at ING Bank said.
Investors will monitor an investigation starting on
September 24 into government accusations that central bank
Governor Adam Glapinski may have broken the law.
In Africa, the rand was flat, though up around 3% so
far this year, ahead of inflation data and a central bank rate
decision bank next week.
Yields on Sri Lankan hard currency bonds expiring in 2029
slipped over 270 bps ahead of elections in the
following week. A report said bondholders and the government
were holding a fresh round of talks, as the island nation tries
to emerge from a debt crisis.
Maldives' Islamic dollar bond rose for the
fifth day - up by over 3 cents on the dollar - as the
archipelago nation vowed to avoid a debt default.