(Updates with cenbank decision, FX reaction)
By Anita Komuves
BUDAPEST, June 22 (Reuters) - The Hungarian forint eased and
government bond yields rose after the central bank raised its
base rate by 30 basis points, slightly exceeding forecasts,
becoming the first in the European Union to tighten policy as
the economy recovers from the pandemic.
The forint slid 0.56% to 356 to the euro by 1228 GMT,
pressured by uncertainty over the bank's next move with the
one-week deposit rate, which the National Bank of Hungary (NBH)
sets every Thursday, two currency traders in Budapest said.
"If they raise the one-week rate to higher than the base
rate, let's say to 1%, that could support the forint," one
trader said. The one-week deposit facility is currently the main
policy tool used by the NBH.
A Reuters poll of analysts expects the NBH to raise its
one-week deposit rate by 15 basis points to 0.9% from
0.75% by the end of this month, which would bring it in line
with the prevailing base rate.
The bank will issue a statement and hold a press conference
at 1300 GMT. Government bond yields were up 3-4 basis points
after the central bank's decision, a fixed-income trader said.
"The market is still waiting for the statement and the press
conference, and for what happens to the one-week deposit rate."
The Czech National Bank is also expected to raise its base
rate at its Wednesday meeting. A Reuters poll forecasts a 25
basis points hike.
The Czech crown edged down 0.05% to trade at
25.530 per euro.
Elsewhere, the Polish zloty slid 0.07% to 4.5291
per euro, while the Romanian leu edged down 0.07% to
4.9260.
Stocks in the region were mixed, with Budapest down
0.21% while Warsaw firmed 0.15%. Prague was 0.15%
lower, while Bucharest eased 0.25%.
CEE SNAPSHO AT
MARKETS T 1428 CET
CURRENC
IES
Latest Previous Daily Change
bid close change in 2021
EURCZK= Czech
EURHUF= Hungary 0
EURPLN= Polish
EURRON= Romania
EURHRK= Croatia
EURRSD= Serbian 0
Note: calculated from 1800
daily CET
change Latest Previous Daily Change
close change in 2021
.PX Prague 1164.16 1165.950 -0.15% +13.34
0 %
.BUX Budapes 48275.7 48379.62 -0.21% +14.65
t 3 %
.WIG20 Warsaw 2222.71 2219.45 +0.15% +12.03
%
.BETI Buchare 11579.0 11608.18 -0.25% +18.09
st 1 %
.SBITOP Ljublja <.SBITOP 1132.96 1138.83 -0.52% +25.77
na > %
.CRBEX Zagreb 1981.15 1981.15 +0.00% +13.91
%
.BELEX1 Belgrad <.BELEX1 776.74 775.57 +0.15% +3.76%
5 e 5>
.SOFIX Sofia 551.96 557.84 -1.05% +23.33
%
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republi
c
CZ2YT=R s
CZ5YT=R s
CZ10YT= s
Poland
PL2YT=R s
PL5YT=R s
PL10YT= s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech 0.83 1.10 1.42 0.44
Rep
Hungary 1.47 1.76 1.90 0.95
Poland 0.35 0.57 0.79 0.21
Note: are for ask
FRA prices
quotes
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(Reporting by Anita Komuves; editing by Uttaresh.V and Krishna
Chandra Eluri)
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