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Zloty inches higher as Polish cenbank chief to give clues on rate outlook



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-Zloty inches higher as Polish cenbank chief to give clues on rate outlook</title></head><body>

By Anita Komuves

BUDAPEST, Sept 5 (Reuters) -Central European currencies were little moved on Thursday as investors were looking ahead to speeches by the governors of the central banks of Poland and Hungary, both scheduled later in the day.

The Polish zloty EURPLN= edged up, adding 0.12% to trade at 4.2710 versus the common currency after the National Bank of Poland (NBP) left its main interest rate on hold at 5.75% as expected on Wednesday, and markets firmly focused on any indications of when borrowing costs could start to fall.

Governor Adam Glapinski holds a press conference at 1300 GMT. In July, Glapinski said there would be no rate cuts before 2026, but last month he said it could not be ruled out that easing would start earlier.

"There seems to be no turn of the Governor's mind, so we will probably get only a slightly weaker hawkish tone than we are used to, something between the June and July versions," ING wrote in a note.

"However, markets are on the dovish side with the first full cut priced in for December this year while our economists are expecting the first cut only in the second quarter of next year," they said.

Elsewhere, the Czech crown EURCZK= slid 0.06% to 25.0590 per euro.

A Reuters poll on Thursday showed that the Czech crown was expected to lead gains among central Europe's main currencies in the coming year as the economy recovers and interest rate cuts slow.

Data showed on Thursday that Czech retail sales continued to recover, rising an eighth straight month.

"The combination of low inflation and solid nominal wage growth... is creating a favourable environment for a continued recovery in retail sales," Generali Investments CEE chief economist Radomir Jac said.

Hungary's forint EURHUF= firmed 0.11%, trading at 392.60 to the euro ahead of a speech by Central Bank Governor Gyorgy Matolcsy who was scheduled to speak at an annual conference for economists.




CEE MARKETS

SNAPSHOT

AT 1014 CET




CURRENCIES






Latest

Previous

Daily

Change



trade

close

change

in 2024

Czech crown

EURCZK=

25.0590

25.0440

-0.06%

-1.43%

Hungary forint

EURHUF=

392.6000

393.0500

+0.11%

-2.40%

Polish zloty

EURPLN=

4.2710

4.2760

+0.12%

+1.72%

Romanian leu

EURRON=

4.9713

4.9705

-0.02%

+0.06%

Serbian dinar

EURRSD=

116.9400

117.0200

+0.07%

+0.26%

Note: daily change

calculated from


1800 CET










Latest

Previous

Daily

Change




close

change

in 2024

Prague

.PX

1597.68

1592.4800

+0.33%

+12.99%

Budapest

.BUX

72367.52

72243.41

+0.17%

+19.38%

Warsaw

.WIG20

2411.12

2403.12

+0.33%

+2.91%

Bucharest

.BETI

17916.52

18008.23

-0.51%

+16.56%











Spread

Daily





vs Bund

change in

Czech Republic





spread

2-year

CZ2YT=RR

3.3170

-0.0210

+100bps

-2bps

5-year

CZ5YT=RR

3.5370

0.0090

+143bps

+0bps

10-year

CZ10YT=RR

3.7270

-0.0290

+150bps

-4bps

Poland






2-year

PL2YT=RR

4.7900

0.0690

+247bps

+7bps

5-year

PL5YT=RR

5.1230

-0.0150

+301bps

-2bps

10-year

PL10YT=RR

5.3310

-0.0230

+311bps

-3bps








FORWARD RATE AGREEMENTS






3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

3.88

3.54

3.26

4.36

Hungary

HUFFRABUBOR=

6.56

6.14

5.69

6.50

Poland

PLNFRAWIBOR=

5.74

5.39

4.95

5.86

Note: FRA quotes

are for ask prices




**************************************************************











Additional reporting by Karol Badohal and Alan Charlish in Warsaw and Jason Hovet in Prague; Editing by Sharon Singleton

For related news and prices, click on the codes in brackets: All emerging market news EMRG CEEU CEE/ Spot FX rates Eastern Europe spot FX EEFX= Middle East spot FX MEFX= Asia spot FX ASIAFX= Latin America spot FX LATAMFX= Other news and reports World central bank news CEN Economic Data Guide ECONGUIDE Official rates GLOBAL/INT Emerging Diary EMRG/DIARY Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY
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