*

EM stocks flat overall

*

Turkey rate decision due at 1100 GMT

*

Romania inflation 9.85% y/y in August

By Pranav Kashyap and Twesha Dikshit

Sept 11 (Reuters) - Turkish markets nervously awaited a

rate decision at 1100 GMT on Thursday, while other emerging

market stocks rose slightly.

The lira slipped and Istanbul stocks were

marginally higher as traders waited for a decision on a likely

200-basis-point cut with hotter-than-expected inflation and

growth limiting the central bank's room for manoeuvre.

Political jitters have also increased since a court last

week removed the Istanbul provincial chief of the opposition CHP

party - an echo of past flare-ups that spurred flights from

Turkish assets.

In the last exodus, rates were raised to steady the lira,

but analysts were mostly not inclined to expect a repeat, with

the key one-week repo rate currently at 43%.

"There is a risk if they cut too quickly, that may trigger

some concerns about monetary policy credibility, therefore the

central bank has to be careful," said Jon Harrison, managing

director of EM macro strategy at TS Lombard.

"I don't think the political situation is serious enough to

warrant another withdrawal of foreign investors."

Romania's leu was flat against the euro, while

Bucharest's main index was also flat as investors

digested a hotter-than-expected inflation reading. Consumer

prices rose 9.85% year-on-year in August from 7.84% in July,

boosted by tax hikes.

The U.N. Security Council was scheduled to hold an emergency

meeting at Poland's behest to address Russia's violation of

Polish airspace, a day after Poland shot down multiple Russian

drones that had encroached overnight.

Warsaw's benchmark stock index added 0.7% while the

zloty was little changed.

CHINA STOCKS RISE

China was trying to tackle the backlog of unpaid bills owed

by local governments to the private sector, estimated to be over

$1 trillion, by asking state lenders and policy banks to lend to

local authorities, a Bloomberg News report said.

The CSI 300 index and SSE Composite index

jumped 2.3% and 1.6%, respectively, while most other Asian

markets were up after widely pricing in a U.S. Federal Reserve

rate cut next week.

A gauge tracking global emerging market stocks

surrendered early gains to stand flat, backing off a four-year

high, even as investors rotate into higher-yielding EM assets.

A softer dollar, pressured by expectations of a Fed cut and

cracks in the labour market, has burnished the appeal of EM

currencies, while political noise around Fed independence has

dented confidence in U.S. assets.

In the year to date, MSCI's Eastern Europe share index

is up more than 46%, trouncing the S&P 500's

11%.

Investors poured nearly $45 billion into EM assets in

August, the biggest haul in about a year, but sizable outflows

from ex-China equities hinted at appetite cooling, a banking

trade group reported.

Elsewhere, Thai consumer confidence dropped for a seventh

consecutive month in August to its lowest level in 32 months due

to concerns about a slow economic recovery, political

instability and U.S. tariffs.

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see