(Updates throughout with Hungary rates, Czech central banker)
BUDAPEST, Jan 27 (Reuters) - The forint climbed to a
2-year high against the euro on Tuesday after Hungary's central
bank left interest rates unchanged, while giving no clues on
when it might again ease policy after a more than year-long
pause.
The central ?bank left its base rate steady at the European
Union's joint-highest level of 6.5%, as widely expected,
although markets were ?tuned to its communication after the
decision after the bank adopted a more dovish ?tone last month.
Governor Mihaly Varga said January's inflation figures, ?to
be released next month, ?would be key in shaping policymakers'
view of underlying price pressures, and reiterated the bank
should stay cautious.
The forint ?took the lack of new clarity
positively, firming ?more than half a percent on the day to trade
at 379.65 per euro at 1547 GMT.
'CAUTIOUS TONE'
"(The central bank) adopted a ?noticeably more cautious tone
again," Erste Group Bank ?said, adding ?the probability of a
February rate cut has diminished.
Other analysts said a rate cut still remained possible, and
Goldman Sachs said a base case of a ?cut in the first quarter
remained intact, conditional on favourable inflation readings,
adding forint appreciation was a dovish cue for the rate
outlook.
The forint has been fuelled by tight central bank policy
since Hungary's rate setters last cut in late-2024. Analysts in
a Reuters poll last week saw room for 75 basis points worth of
rate easing by ?the ?end of 2026.
Elsewhere, the Czech crown eased a touch to 24.252
to the euro but has been hovering off its own more than two-year
high ?of 24.100 hit in December.
The Czech National Bank meets on rates next week and could
discuss slight monetary easing due to external factors that may
lead large central banks to cut rates, Vice-Governor Jan Frait
said in a Reuters interview published on Tuesday.
In Poland, the zloty gained 0.2% and Romania's leu
was up a touch, helped by U.S. dollar weakness. Stock
markets were up, ?led by a 1.5% rise in Prague.
CEE MARKETS SNAPSHOT AT 1647 CET
CURRENCIES Latest Previou Daily Change
trade s close change in 2026
Czech 0
Hungary 00 0 %
Polish %
Romania %
Serbian 00 0 %
Note: daily change calculated from 1800 CET
STOCKS Latest Previou Daily Change
s close change in 2026
Prague 2783.1 2741.03 +1.54 +3.63%
7 00 %
Budapes 128069 126663. +1.11 +15.34
t .36 78 % %
Warsaw 3 %
Buchare 27775. 27457.8 +1.16 +13.65
st 04 4 % %
BONDS Yield Yield Spread Daily
(bid) change vs change
Bund in
spread
Czech ps
2-year
Czech ps
5-year
Czech ps
10-year
Poland ps
Poland ps
Poland ps
FORWARD RATE 3x6 6x9 9x12 3M
AGREEMENTS interba
nk
Czech Poland Note: FRA quotes are for
ask prices
(Reporting by Anita Komuves in Budapest, ?Jason Hovet in Prague,
and Pawel Florkiewicz in Warsaw; Editing by Harikrishnan Nair
and Alison Williams)
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