CE currencies off their lows
Scope for further monetary easing limited
Although the CEE currencies were off their lows in the morning, the weekly performance is clearly disappointing. The forint touched new 2-year lows as Central bank President Gyorgy Matolcsy said on Wednesday that subdued inflation provided room for further easing. Markets did not think so. Bets for 3-months interest rates in 3-months rose as much as 1 percentage points after the comments and imply a more than 50 bps increase in the benchmark rate.
Read the full report: FX Daily
KBC