for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

CEE MARKETS-Forint eases further on central bank policy uncertainty

    BUDAPEST, June 15 (Reuters) - Hungary's forint
eased further against the euro on Tuesday after a central banker
was quoted as saying that the bank would probably embark on
quarterly rate hikes.
    Gyula Pleschinger was quoted by Bloomberg on Monday as
saying that the central bank may scrap the one-week deposit
facility, which he said was a temporary tool to navigate market
volatility, a situation that he said Hungary had now passed.
    However, Pleschinger later told the website portfolio.hu
that the facility would not be phased out, apparently walking
back from his earlier comments.
    The remarks triggered a turnaround in the forint, which had
firmed to more than nine-month-highs versus the euro after
Deputy Governor Barnabas Virag said last month the central bank
would start tightening monetary policy to tackle inflation.
    "The forint eased substantially yesterday due to heightened
uncertainty over the central bank's policy toolkit but the
(Polish) zloty has now also followed suit," analysts at Erste
Investment said in a note.
    The bank meets next Tuesday to discuss interest rates and
will also publish updated economic forecasts. A rate rise would
make it the first central bank in the European Union to start a
tightening cycle since the coronavirus pandemic.
    The zloty and the forint both eased 0.3% versus
the euro by 0912 GMT.
    "At next week's Hungarian central bank meeting not just the
size of the rate increase will be worth looking at but also
whether the effective central bank policy tool, currently the
one-week deposit, and its maturity change," Erste said.
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1112              
                                     CET               
                            CURRENC                           
                            IES                        
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2021
 EURCZK  Czech     <EURCZK  25.4600  25.4300   -0.12%   +3.02%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  351.250  350.200   -0.30%   +3.27%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5275   4.5150   -0.28%   +0.70%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.9240   4.9220   -0.04%   -1.20%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.4865   7.4893   +0.04%   +0.81%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.480  117.580   +0.09%   +0.08%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2021
 .PX     Prague             1174.42  1180.01   -0.47%   +14.34
                                          00                 %
 .BUX    Budapest           49324.1  49015.2   +0.63%   +17.14
                                  5        4                 %
 .WIG20  Warsaw    <.WIG20  2252.13  2253.20   -0.05%   +13.52
                   >                                         %
 .BETI   Buchares           11596.6  11568.0   +0.25%   +18.27
         t                        4        9                 %
 .SBITO  Ljubljan  <.SBITO  1143.42  1143.56   -0.01%   +26.93
 P       a         P>                                        %
 .CRBEX  Zagreb    <.CRBEX  1971.94  1965.61   +0.32%   +13.38
                   >                                         %
 .BELEX  Belgrade  <.BELEX   782.32   781.71   +0.08%   +4.50%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   549.74   544.70   +0.93%   +22.84
                   >                                         %
                                                              
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.2840  -0.0020   +096bp    +0bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   1.5520  -0.0120   +218bp    -1bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.7280   0.0410   +199bp    +5bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.3330  -0.0130   +101bp    -1bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   1.2110  -0.0160   +184bp    -1bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.7380  -0.0090   +200bp    +0bps
 =RR     10-year   =RR>                             s  
                   FORWARD                                    
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.73     0.97     1.27     0.42
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     1.39     1.66     1.83     0.93
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.32     0.45     0.62     0.21
                   ><WIBOR                             
                   =>                                  
         Note:     are for ask                                
         FRA       prices                              
         quotes                                        
         ********************************************         
         ******************                            
 
 (Reporting by Gergely Szakacs
Editing by Alexander Smith)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up