Analysts, though, forecast rate stability to continue in the first half before cuts begin later in 2023 with signs that double-digit inflation is set to ease this year. Markets were also tuned to the European Central Bank on Thursday with expectations of a 50 basis point increase keeping the euro - central Europe's main reference currency - strong against the dollar as investors took a dovish cue from the U.S. Federal Reserve. That gave a boost to risk appetite in central Europe. The forint was the biggest mover, rising 0.6% by 1005 GMT, while the crown firmed 0.1% to 23.77 to the euro before a rate decision due at 1330 GMT. Analysts forecast no change to rates. "For the market, the most interesting thing will be the (Czech central bank's) new outlook, which should show faster economic growth and inflation a bit higher (than previously forecast)," CSOB said. The crown impact on the policy outlook will also be interesting as it currently is 3% stronger than the bank's most recent assumptions, and is trading at levels last seen in late 2008. Markets expect the Czech bank to continue to pledge intervening if necessary to prevent any sharp weakening, which it has done since May last year. In Hungary, the forint was trading at 387.75 to the euro, close to eight-month highs hit last week. The forint has fallen back a bit this week after S&P downgraded the country's debt rating late on Friday last week. "European rate decisions and subsequent comments could have a substantial impact on currency markets today. The forint has been firming slightly due to the euro's gains and stronger risk appetite," Magyar Bankholding analysts said in a note. Elsewhere, the Polish zloty rose 0.1% and Romania's leu gained 0.2%. Central European stocks mostly rose, with Warsaw blue chips climbing more than 1%. Czech utility CEZ , though, retreated from three-month highs on Thursday after the company said it expected adjusted net profit to drop by almost half this year due to state windfall taxes and price caps. Polish bank Santander Bank Polska also gave up early gains won in morning trade. The bank reported fourth-quarter profit a touch above expectations. CEE SNAPSHO AT
MARKETS T 1105
CET
CURRENC
IES
Latest Previou Daily Change s
bid close change in 2023
EURCZK Czech <EURCZK 23.7720 23.7860 +0.06% +1.62%
= crown =>
EURHUF Hungary <EURHUF 387.750 390.100 +0.61% +3.01%
= forint => 0 0
EURPLN Polish <EURPLN 4.7070 4.7125 +0.12% -0.37%
= zloty =>
EURRON Romanian <EURRON 4.8967 4.9065 +0.20% +0.94%
= leu =>
EURHRK Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05%
= kuna =>
EURRSD Serbian <EURRSD 117.200 117.370 +0.15% +0.09%
= dinar => 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change s
close change in 2023
.PX Prague 1343.38 1342.50 +0.07% +11.79
00 %
.BUX Budapest 45658.0 45209.7 +0.99% +4.26%
6 0
.WIG20 Warsaw <.WIG20 1892.49 1871.93 +1.10% +5.61%
>
.BETI Buchares 12225.2 12168.1 +0.47% +4.82%
t 9 6
.SBITO Ljubljan <.SBITO 1153.74 1149.77 +0.35% +10.01
P a P> %
.BELEX Belgrade <.BELEX 861.14 857.36 +0.44% +4.43%
15 15>
.SOFIX Sofia <.SOFIX 615.73 615.10 +0.10% +2.37%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 5.7050 0.0000 +306bp +2bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 4.9190 -0.0750 +263bp -4bps
RR RR> s
CZ10YT <CZ10YT 4.4620 -0.1150 +221bp -8bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 5.9630 -0.0610 +331bp -5bps
RR RR> s
PL5YT= 5-year <PL5YT= 5.8050 -0.1190 +352bp -9bps
RR RR> s
PL10YT <PL10YT 5.8870 -0.1170 +363bp -8bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.09 6.89 6.38 7.20 Rep ><PRIBO
R=>
Hungary <HUFFRA 14.59 12.90 11.44 16.05 ><BUBOR
=>
Poland <PLNFRA 6.95 6.80 6.36 6.95 ><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Jason Hovet in Prague, Krisztina Than in Budapest
and Pawel Florkiewicz in Warsaw; Editing by Sharon Singleton)
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