CEE MARKETS-Currencies mixed as investors await central bank meetings

    By Anita Komuves
    BUDAPEST, May 25 (Reuters) - Central European currencies
were mixed on Monday as investors awaited central bank meetings
in Hungary, Poland and Romania later this week, although most
analysts do not expect any change in interest rates. 
    The Polish, Czech and the Romanian central banks have cut
rates in the past two months to help their economies, which have
been hit by lockdowns introduced to fight the coronavirus
pandemic.
    The National Bank of Hungary (NBH) tightened its previously
ultra-dovish policy in April to stabilize the forint and started
a quantitative easing programme in May to stimulate the economy.
    The NBH holds its rate-setting meeting on Tuesday and a
Reuters poll expects it to keep rates on hold.
    "The NBH could spend the next period waiting to see more
clearly the inflation and growth prospects for the second half
of the year," CIB Bank said in a note. 
    The forint traded at 350.85 early on Monday,
easing 0.09% from the previous session.
    The central bank of Poland (NBP) holds its rate-setting
meeting on Thursday. 
    "The NBP will take a wait-and-see approach after it cut
rates against expectations in the last MPC meeting and initiated
government and state-guaranteed bond purchases, waiting for more
data and clarity on the economic outlook," Goldman Sachs wrote
in a research note.
    The Polish zloty was up by 0.05% and was trading
at 4.5165 versus the euro on Monday.
    The Romanian central bank will also likely meet later this
week. A majority of analysts polled by Reuters expect the bank
to keep rates on hold in May, but see the bank cutting rates
further this year.
    The Czech crown was down 0.1% and trading at
27.331, but still holding onto its gains last week. A dealer in
Prague expected a "lazy trading day" with the UK and US markets
closed for public holidays.
    

            CEE        SNAPSHOT    AT                         
            MARKETS               0943 CET            
                       CURRENCIE                              
                       S                              
                       Latest     Previous  Daily     Change
                       bid        close     change    in 2020
 Czech                   27.3310   27.3050    -0.10%    -6.95%
 crown                                                
 Hungary                350.8500  350.5500    -0.09%    -5.62%
 forint                                               
 Polish                   4.5165    4.5188    +0.05%    -5.76%
 zloty                                                
 Romanian                 4.8420    4.8425    +0.01%    -1.11%
 leu                                                  
 Croatian                 7.5780    7.5873    +0.12%    -1.75%
 kuna                                                 
 Serbian                117.5000  117.5800    +0.07%    +0.06%
 dinar                                                
 Note:      calculated from                 1800 CET          
 daily                                                
 change                                               
                                                              
                       Latest     Previous  Daily     Change
                                  close     change    in 2020
 Prague                   877.08  877.0100    +0.01%   -21.38%
 Budapest               35074.50  35050.92    +0.07%   -23.89%
 Warsaw                  1637.59   1630.44    +0.44%   -23.84%
 Bucharest               8646.49   8592.48    +0.63%   -13.34%
 Ljubljana                813.57    811.90    +0.21%   -12.13%
 Zagreb                  1570.91   1569.77    +0.07%   -22.13%
 Belgrade   <.BELEX15     669.94    669.94    +0.00%   -16.43%
            >                                         
 Sofia                    450.22    450.22    +0.00%   -20.76%
                                                              
                       Yield      Yield     Spread    Daily
                       (bid)      change    vs Bund   change
                                                      in
 Czech                                                spread
 Republic                                             
   2-year   <CZ2YT=RR     0.1250   -0.0220   +081bps     -1bps
            >                                         
   5-year   <CZ5YT=RR     0.3690   -0.0700   +106bps     -6bps
            >                                         
   10-year  <CZ10YT=R     0.7950    0.0180   +130bps     +3bps
            R>                                        
 Poland                                                       
   2-year   <PL2YT=RR     0.5620    0.0080   +125bps     +2bps
            >                                         
   5-year   <PL5YT=RR     0.9740   -0.0080   +166bps     +1bps
            >                                         
   10-year  <PL10YT=R     1.4200   -0.0190   +192bps     -1bps
            R>                                        
            FORWARD                                           
                       3x6        6x9       9x12      3M
                                                      interban
                                                      k
 Czech Rep          <       0.25      0.26      0.29      0.34
            PRIBOR=>                                  
 Hungary            <       0.83      0.79      0.74      0.98
            BUBOR=>                                   
 Poland             <       0.42      0.37      0.37      0.68
            WIBOR=>                                   
 Note: FRA  are for ask prices                                
 quotes                                               
 ***************************************************          
 ***********                                          
 


 (Additional reporting by Jason Hovet in Prague, Alan Charlish
in Warsaw and Luiza Ilie and Radu-Sorin Marinas in Bucharest
Editing by Susan Fenton)
  
 
 

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