KBC Market Research Desk
KBC Bank
Regional Overview
Macro, FX & Rates: Zloty close to an eight-month high
(PL) On Thursday, the polish zloty strengthened and was trading close to an eightmonth high against the euro. / Apart from a stable rating, good prospects of the Polish economy, rising inflation and dovish Fed hike, minutes from the latest meeting of the Monetary Policy Council (MPC) could have supported the zloty. The majority of MPC still keeps its view that interest rates should remain unchanged in the following quarters. But the minutes also said that it might be justified to consider an increase in the NBP interest rates if inflation continues to surprise to the upside (in comparison with March projection). All in all, the wording remained very similar to the previous one but this time it also showed some concerns of possible impact of (low) real interest rates on asset prices in Poland.
(CZ) Ministry of finance sold three times what it had offered at a T-bill auction yesterday. / Strong demand (it has nearly doubled in comparison with the auction which took place week before) stems from the fact that the end of CNB's "hard commitment" to intervene against the koruna's appreciation at least until the end of March is approaching.
| LAST | PREVIOUS | CHANGE (%) | |
| EURCZK | 27.02 | 27.02 | 0.00 |
| EURHUF | 308.7 | 308.7 | 0.00 |
| EURPLN | 4.281 | 4.281 | 0.00 |
| LAST | PREVIOUS | CHANGE (bps) | |
| CZGB 10Y | 0.945 | 0.945 | 0.0 |
| HUGB 10Y | 3.57 | 3.57 | 0.0 |
| PLGB 10Y | 3.69 | 3.69 | 0.0 |
| LAST | PREVIOUS | CHANGE (%) | |
| PX | 982.7 | 982.7 | 0.00 |
| BUX | 32044 | 32044 | 0.00 |
| WIG | 59453 | 59453 | 0.00 |
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This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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