for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

UPDATE 1-CEE MARKETS-Forint gains as central bank sends hawkish inflation signal

 (Adds Hungary central bank rate decision and Romanian vote on
pensions)
    By Anita Komuves
    BUDAPEST, Sept 22 (Reuters) - The Hungarian forint edged up
on Tuesday afternoon after the central bank left interest rates
unchanged at 0.6%, as expected, and said in a statement that it
was committed to maintaining price stability during the
coronavirus pandemic.
    The forint was up more than half percent after the
bank's statement was published but soon retreated to levels near
the five-month lows it reached on Monday. 
    The currency was up 0.14% and trading at 362.20 per euro by
1403 GMT. 
    The bank is in a bind, stuck an with an economy that is seen
shrinking far more than expected and relatively high inflation,
which has also put the forint under pressure.
    Markets were watching whether the bank would emphasize
inflation or economic stimulus in its message, where hawkish
words underlining inflation would strengthen the forint,
analysts said before the rate decision. 
    The bank is ready to use its tools if justified by the
inflation outlook, the bank's deputy governor, Barnabas Virag,
said at an online news briefing on Tuesday. 
    Virag said the crisis caused by the coronavirus pandemic
could weaken inflation in the medium term, and inflation could
stabilise at 3% in 2022. 
    The NBH cut its 2020 GDP growth forecast to 5.1% to 6.8%
recession from 0.3% to 2.0% growth and said that Hungary's
economic performance may recover to its pre-crisis level by the
turn of 2022.
    The Czech crown, recently under pressure from a
spike in coronavirus cases, gained 0.7% and was trading at
26.975 after losing more than 1% of its value on Monday.
    The overall number of confirmed COVID-19 cases rose to
50,764 in the country of 10.7 million on Monday.
    The Polish zloty also rose, gaining 0.26% and
trading at 4.4861 versus the common currency. 
    The Romanian leu edged down 0.07% after parliament
voted to raise all state pensions by 40%, opening the way for
potential ratings cuts two months before a parliamentary
election.
    Stock markets advanced and recouped some of Monday's losses,
with Prague's equities up 0.58%. Warsaw's blue chip index
 gained 0.96% while Budapest 0.58%. Bucharest's
stocks were up 1.32%.
    
    
                    CEE       SNAPSHO   AT                      
                    MARKETS   T        1603 CET          
                              CURRENC                           
                              IES                        
                              Latest   Previous  Daily   Change
                              bid      close     change  in 2020
 EURCZK=  Czech     <EURCZK=  26.9750   27.1630   +0.70   -5.72%
          crown     >                                 %  
 EURHUF=  Hungary   <EURHUF=  362.200  362.7100   +0.14   -8.57%
          forint    >               0                 %  
 EURPLN=  Polish    <EURPLN=   4.4861    4.4976   +0.26   -5.12%
          zloty     >                                 %  
 EURRON=  Romanian  <EURRON=   4.8625    4.8590  -0.07%   -1.53%
          leu       >                                    
 EURHRK=  Croatian  <EURHRK=   7.5475    7.5435  -0.05%   -1.35%
          kuna      >                                    
 EURRSD=  Serbian   <EURRSD=  117.500  117.6000   +0.09   +0.06%
          dinar     >               0                 %  
          Note:     calculated from              1800           
          daily                                  CET     
          change Latest   Previous  Daily   Change
                                       close     change  in 2020
 .PX      Prague               866.89  861.8700   +0.58  -22.30%
                                                      %  
 .BUX     Budapest            32357.3  32223.20   +0.42  -29.78%
                                    2                 %  
 .WIG20   Warsaw              1698.36   1682.26   +0.96  -21.01%
                                                      %  
 .BETI    Buchares            9008.72   8891.59   +1.32   -9.71%
          t                                           %  
 .SBITOP  Ljubljan  <.SBITOP   833.14    831.10   +0.25  -10.01%
          a         >                                 %  
 .CRBEX   Zagreb              1619.00   1613.96   +0.31  -19.75%
                                                      %  
 .BELEX1  Belgrade  <.BELEX1   692.62    688.68   +0.57  -13.61%
 5                  5>                                %  
 .SOFIX   Sofia                423.59    423.59   +0.00  -25.44%
                                                      %  
                                                                
                              Yield    Yield     Spread  Daily
                              (bid)    change    vs      change
                                                 Bund    in
          Czech                                          spread
          Republic                                       
 CZ2YT=R    2-year  <CZ2YT=R   0.1010   -0.0920   +081b   -11bps
 R                  R>                               ps  
 CZ5YT=R    5-year  <CZ5YT=R   0.5390   -0.0470   +126b    -6bps
 R                  R>                               ps  
 CZ10YT=            <CZ10YT=   0.8740   -0.0410   +138b    -6bps
 RR       10-year   RR>                              ps  
          Poland                                                
 PL2YT=R    2-year  <PL2YT=R   0.0770    0.0070   +078b    -1bps
 R                  R>                               ps  
 PL5YT=R    5-year  <PL5YT=R   0.6530    0.0020   +137b    -1bps
 R                  R>                               ps  
 PL10YT=            <PL10YT=   1.3420    0.0410   +185b    +2bps
 RR       10-year   RR>                              ps  
                    FORWARD                                     
                              3x6      6x9       9x12    3M
                                                         interba
                                                         nk
          Czech                  0.34      0.34    0.36     0.34
          Rep       <PRIBOR=                             
                    >                                    
          Hungary                0.78      0.84    0.91     0.63
                                                         
          Poland                 0.18      0.17    0.17     0.22
                                                         
          Note:     are for ask                                 
          FRA       prices                               
          quotes                                         
          *********************************************         
          *****************                              
 

 (Additional reporting by Luiza Ilie in Bucharest, Jason Hovet
in Prague and Alan Charlish in Warsaw, editing by Ed Osmond)
  
 
 
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up