BUCHAREST, Jan 7 (Reuters) - The Polish zloty was steady
against the euro in early trade on Tuesday as analysts saw no
change in the central bank's interest rate policy despite its
highest inflation reading since 2012.
Flash data showed Polish consumer price inflation at 3.4% on
the year in December, above market expectations of 2.9%.
"A strong increase in inflation should be neutral for
monetary policy as price pressure remains mostly driven by
non-core items," Erste Bank said in a research note. "We
continue to see the flat policy rate until the end of 2021."
Monika Kurtek, chief economist at Bank Pocztowy, said the
inflation level was "certainly disturbing for some MPC (members)
and will trigger a discussion on the current monetary policy".
"However, interest rate changes should not be expected in
the coming months, as the Council will probably want to wait and
observe the next data."
At 0935 GMT, the zloty was flat at 4.2355 to the
euro.
Elsewhere in the region, the Romanian leu was also
flat ahead of a Wednesday central bank meeting when policymakers
are widely expected to leave rates unchanged. The Hungarian
forint was down 0.3% at 330.4200 to the euro.
The Czech crown was down 0.1% at 25.2500 per euro,
after briefly touching its strongest level since Feb. 2018 in
late trading on Monday. Analysts said the crown's April 2018
high of 25.400 would continue to act as a resistance level.
Stocks mostly rebounded across the region and were firmer,
led by Hungary's blue chip index, which was 0.7% higher
on the day.
CEE SNAPSHO AT
MARKETS T 1057
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
Czech <EURCZK= 25.2490 25.2400 -0.04% +0.72%
crown >
Hungary <EURHUF= 330.800 329.590 -0.37% +0.10%
forint > 0 0
Polish <EURPLN= 4.2339 4.2342 +0.01% +0.53%
zloty >
Romanian <EURRON= 4.7745 4.7755 +0.02% +0.29%
leu >
Croatian <EURHRK= 7.4475 7.4642 +0.22% -0.03%
kuna >
Serbian <EURRSD= 117.410 117.510 +0.09% +0.14%
dinar > 0 0
Note: calculated from 1800
daily CET
change Latest Previou Daily Change
s
close change in 2020
Prague 1119.30 1118.43 +0.08% +0.33%
00
Budapest 44945.7 44658.7 +0.64% -2.47%
0 6
Warsaw 2165.35 2173.97 -0.40% +0.71%
Buchares 9876.65 9865.83 +0.11% -1.01%
t
Ljubljan <.SBITOP 933.80 932.92 +0.09% +0.86%
a >
Zagreb 2035.10 2036.69 -0.08% +0.88%
Belgrade <.BELEX1 801.69 801.69 +0.00% +0.00%
5>
Sofia 568.50 570.65 -0.38% +0.06%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT=R 1.7130 0.0310 +233bp +3bps
R> s
5-year <CZ5YT=R 1.4480 0.0660 +200bp +7bps
R> s
<CZ10YT= 1.6010 0.0350 +188bp +2bps
10-year RR> s
Poland
2-year <PL2YT=R 1.5300 0.0490 +215bp +5bps
R> s
5-year <PL5YT=R 1.8720 0.0650 +242bp +7bps
R> s
<PL10YT= 2.1410 0.0670 +242bp +6bps
10-year RR> s
FORWARD RATE AGREEME
NT
3x6 6x9 9x12 3M
interba
nk
Czech 2.25 2.24 2.19 2.17
Rep <PRIBOR=
>
Hungary 0.27 0.34 0.45 0.00
Poland 1.74 1.73 1.72 1.71
Note: are for ask
FRA prices
quotes
*********************************************
*****************
(Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague
and Alan Charlish in Warsaw; Editing by Kevin Liffey)
Our Standards: The Thomson Reuters Trust Principles.