Inflation remains low in Central Europe
The central European FX market was calm yesterday. The Polish zloty ranged near 4.14 EUR/PLN and also the Czech koruna remained stable. Only the Hungarian forint strengthened slightly; its gains were limited, though, and its exchange rate failed to drop below 309.0 against the euro. Taking into account that top central bankers like Adam Balog see room for one or two rate cuts due to very low inflation, the NBH hardly supports the HUF in coming months. Inflation in Hungary remains negative, having hit its record low in June at – 0.3% y/y. Mr. Balog also announced that the government program for conversion of FX loans would have no impact on central bank´s monetary policy in one or two months.
Read the full report: FX Daily