News

PRAGUE, March 4 (Reuters) - The forint sat just above its lowest level in nearly a year on Monday with eyes on an economic forum where Hungarian Prime Minister Viktor Orban and other government officials were speaking.

In contrast, Poland's zloty was close to a multi-month high with the country's central bank likely to keep interest rates on hold later this week after pausing an easing cycle last year.

Czech central bank Governor Ales Michl said in an interview with tabloid Blesk on Monday that rates will continue to fall, although the bank remained cautious and would stay hawkish in its easing.

At the same Hungarian forum last year, Orban hit back at central bank policy, urging lower borrowing costs.

The central bank has been in easing mode since May last year but interest rates remain the highest in the European Union. Last week it ramped up the pace of rate cuts after weaker-than-expected growth and benign inflation data.

As the economic recovery lags, the government and the National Bank of Hungary have been locked in a dispute for months, with the central bank chief sharply criticising the government's policies and the economy minister calling for sharper rate cuts.

"We expect the spat between the central bank and the government to continue," a trader said of the forum.

The forint EURHUF= was steady at 394.10 to the euro at 0943 GMT, after weakening as far as 394.90 last week.

The zloty EURPLN= inched 0.1% lower to 4.3215 per euro while the Czech crown EURCZK= was a tad higher at 25.333 to the euro as markets looked to 2023 wage data due on Tuesday.

Romania's leu EURRON= was steady around 4.969 per euro.

However, market participants said global data and events will take centre stage, with Federal Reserve Chair Jerome Powell testifying before lawmakers on Wednesday and Thursday, when the European Central Bank will also hold its next policy meeting.

"We do not expect a significant impact on the zloty from the (Polish central bank) meeting, unless new projections show a faster disinflation process in the second half of this year compared to what was presented at recent conferences. This could slightly weaken the zloty," Polish bank PKO BP said.

The zloty has for now backed off from testing its strongest level in four years. Last week it hit its highest since December, briefly trading beyond the psychological 4.30 level.

CEE MARKETS

SNAPSHOT

AT 1043 CET

CURRENCIES

in 2024

EURCZK=

Czech crown

EURCZK=

EURHUF=

Hungary forint

EURHUF=

EURPLN=

Polish zloty

EURPLN=

EURRON=

Romanian leu

EURRON=

EURRSD=

Serbian dinar

EURRSD=

117.1500

117.2050

Note: daily change

calculated from

1800 CET

in 2024

.PX

.PX

1460.49

1460.6000

-0.01%

+3.29%

.BUX

.BUX

66204.54

66169.03

+0.05%

+9.21%

.WIG20

.WIG20

2425.36

2424.70

+0.03%

+3.52%

.BETI

.BETI

16044.33

16009.52

+0.22%

+4.38%

vs Bund

change in

Czech Republic

CZ2YT=RR

2-year

3.6010

-0.0010

+074bps

+2bps

CZ5YT=RR

5-year

3.5950

-0.0320

+119bps

-1bps

CZ10YT=RR

10-year

CZ10YT=RR

3.7560

-0.0080

+137bps

+2bps

PL2YT=RR

2-year

PL2YT=RR

5.0220

0.0070

+216bps

+3bps

PL5YT=RR

5-year

PL5YT=RR

5.1470

-0.0140

+274bps

+1bps

PL10YT=RR

10-year

PL10YT=RR

5.2330

-0.0220

+284bps

+0bps

FORWARD

3x6

6x9

9x12

3M interbank

CZKFRAPRIBOR=

HUFFRABUBOR=

PLNFRAWIBOR=

Note: FRA quotes

are for ask prices

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

(Reporting by Jason Hovet in Prague, Boldizsar Gyori in Budapest and Anna Wlodarczak-Semczuk in Warsaw; Editing by Kirsten Donovan)

((jason.hovet@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.