"With the prospect of higher rates for a longer period of time, a solid FX carry is also certain," ING Bank said in a research note. "Overall, the crown thus offers decent risk/reward and we expect it to strengthen further." Komercni Banka said risks to its rate cut outlook were on the upside.
"The start of rate cuts is subject to a high degree of uncertainty," it said. "In our view, it will depend on the development of the domestic economy and inflation, as well as on the policies of foreign central banks."
"We are more concerned that the repo rate could remain at 7%
for longer than we expect than that it could rise further."
Prague's bluechip index was up 1.3% on the day.
Warsaw's was up 2.4% and Bucharest's edged
up 0.1%. The Romanian leu and Polish zloty were up 0.3% and 0.1%, respectively.
Elsewhere, shares in Hungarian oil and gas group MOL opened 2% down on the Budapest bourse, after the
government imposed a new revenue-based tax on the company, and
tweaked earlier windfall taxes as investors were assessing the
net impact of the unexpected changes.
Blue chip index was down 0.4%. The Hungarian forint also edged 0.1% lower, after being on firming trend
since Tuesday's central bank meeting where the bank kept
interest rates unchanged and did not alter its hawkish message.
CEE SNAPSHO AT
MARKETS T 1129
CET
CURRENC
IES
Latest Previou Daily Change s
bid close change in 2023
Czech <EURCZK= 23.5200 23.5700 +0.21% +2.71%
crown >
Hungary <EURHUF= 381.000 380.450 -0.14% +4.84%
forint > 0 0
Polish <EURPLN= 4.6830 4.6880 +0.11% +0.14%
zloty >
Romanian <EURRON= 4.9495 4.9615 +0.24% -0.14%
leu >
Croatian <EURHRK= 7.5330 7.5365 +0.05% +0.05%
kuna >
Serbian <EURRSD= 117.240 117.275 +0.03% +0.05%
dinar > 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change s
close change in 2023
Prague 1339.91 1321.17 +1.42% +11.50
00 %
Budapest 42154.9 42333.8 -0.42% -3.74%
0 2
Warsaw 1751.67 1709.39 +2.47% -2.25%
Buchares 12080.3 12053.4 +0.22% +3.57%
t 4 5
Ljubljan <.SBITOP 1193.54 1193.38 +0.01% +13.80
a > %
Zagreb 2231.44 2226.91 +0.20% +749.2
0%
Belgrade <.BELEX1 887.79 889.26 -0.17% +7.66%
5>
Sofia 605.26 605.26 +0.00% +0.63%
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT=R 5.7740 -0.0720 +314bp -8bps
R> s
5-year <CZ5YT=R 4.8860 -0.0320 +258bp -4bps
R> s
<CZ10YT= 4.5380 -0.0460 +223bp -5bps
10-year RR> s
Poland
2-year <PL2YT=R 6.0540 -0.0250 +342bp -4bps
R> s
5-year <PL5YT=R 6.0060 -0.0030 +370bp -1bps
R> s
<PL10YT= 6.0790 -0.0040 +377bp -1bps 10-year RR> s
FORWARD
3x6 6x9 9x12 3M interba nk Czech 7.15 6.72 6.04 7.18 Rep <PRIBOR=
>
Hungary 14.95 13.20 12.16 16.30 Poland 6.85 6.63 6.21 6.90 Note: are for ask
FRA prices
quotes
*********************************************
*****************
(Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague,
Krisztina Than in Budapest Alan Charlish in Warsaw; Editing by
Rashmi Aich)
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