UPDATE 1-CEE MARKETS-Zloty weakens after cenbank unexpectedly keeps rates unchanged
(Updates with Polish and Romanian cenbank decisions, market reaction, analyst comment, Hungary cenbank deposit tender) By Anita Komuves BUDAPEST, Oct 5 (Reuters) - The zloty weakened on Wednesday after the Polish central bank held its main interest rate steady in a surprise move, while the Hungarian forint recouped some losses from earlier in the day after the central bank's liquidity tightening step. The zloty eased 0.4% on the day to 4.8350 per euro after the National Bank of Poland kept its main interest rate at 6.75%, following central banks in Hungary and the Czech Republic that have already signalled an end to rate hikes. With inflation rising to 17.2% in September, most economists had predicted that the cost of credit would continue to rise. "The market does not reset its expectations yet ... we have to wait for tomorrow's press conference," said Mateusz Sutowicz, financial markets analyst at Bank Millennium. "Perhaps the market will postpone expectations for a return to the cycle by a few months, but I do not think that the market will drop its expectations of a return to rate hikes." The Romanian central bank surprised markets with a larger-than-expected rate hike of 75 basis points to 6.25%, keeping up the pace of tightening saying the short-term inflation outlook has worsened. "External environment is shaped by bold interest rate hikes delivered by the Fed and ECB, prompting thus the NBR to deliver a larger-than-expected rate hike," Erste Bank wrote. The leu edged up 0.03% on the day to trade at 4.9388, unchanged from levels before the rate hike. Elsewhere, the forint was down 0.51% on the day and trading at 422 per euro after falling as far as 426 earlier in the day, its record low that it hit on Monday. The currency recouped some of its losses by 1433 GMT as the central bank accepted 2.093 trillion forints ($4.90 billion) worth of bids at its floating-rate deposit tender on Wednesday. The bank will also offer 1 trillion forints ($2.38 billion) worth of new short-term discount bills at a tender on Thursday as it aims to drain forint liquidity from the market, thus tightening conditions. CEE SNAPSH AT MARKETS OT 1633 CET CURREN CIES Latest Previo Daily Change us bid close change in 2022 EURCZK Czech 0 0 % % EURHUF Hungary 00 00 % EURPLN Polish EURRON Romania % % EURHRK Croatia EURRSD Serbian 00 00 % % Note: calculated from 1800 daily CET change Latest Previo Daily Change us close change in 2022 .PX Prague 1176.1 1177.3 -0.10% 5 500 .BUX Budapes 39201. 39911. -1.78% -22.71 t 78 20 % .WIG20 Warsaw <.WIG20 1422.0 1449.8 -1.92% -37.27 > 4 1 % .BETI Buchare 10994. 10994. -0.00% -15.83 st 19 22 % .SBITO Ljublja <.SBITO 979.51 966.19 +1.38 -21.98 P na P> % % .CRBEX Zagreb <.CRBEX 1921.2 1911.4 +0.51 -7.60% > 7 8 % .BELEX Belgrad <.BELEX 829.66 827.77 +0.23 +1.08 15 e 15> % % .SOFIX Sofia <.SOFIX 582.10 583.54 -0.25% -8.43% > Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republi c CZ2YT= 0 ps CZ5YT= ps CZ10YT ps Poland PL2YT= 0 ps PL5YT= ps PL10YT ps FORWARD 3x6 6x9 9x12 3M interb ank Czech Hungary Poland Note: are for ask FRA prices quotes **************************************** ********************** (Additional reporting by Luiza Ilie in Bucharest, Pawel Florkiewicz in Warsaw and Jason Hovet in Prague; Editing by Subhranshu Sahu and Maju Samuel)
