(Updates with Polish cenbank decision and Czech bond auction)
By Anita Komuves and Alan Charlish
BUDAPEST/WARSAW, Jan 13 (Reuters) - The zloty eased on
Wednesday after the Polish central bank expectedly left interest
rates unchanged at 0.1% and said it could intervene in the FX
market to strengthen the impact of monetary easing.
The zloty eased after the bank"s comments, moving away from
the 4.52 mark it had been at for most of the day. The currency
was down 0.27% on the day, trading at 4.5412 versus the euro by
1528 GMT.
"In line with our expectations, there was no change in
interest rates," said Dawid Pachucki, senior economist at ING
said.
"The lack of a decision (to cut rates) today does not rule
out rate changes in the coming months. The probability of a rate
cut in the first quarter of 2021 is around 40%."
Some analysts think the rate could be cut this year as
December inflation was lower than expected and central bank
governor Adam Glapinski had said a cut could be possible in the
first quarter if there is a third wave of the pandemic.
Elsewhere, the Hungarian forint slid 0.31% to
360.17.
The Czech Finance Ministry sold 13.1 billion crowns worth of
three bonds at its first auction of 2021 on Wednesday, facing a
second year of heavy borrowing as the state deficit remained
high amid the COVID-19 pandemic.
The Czech crown edged up 0.01% to trade at 26.160
per euro, while the Romanian leu was unchanged.
Fresh economic data from the Czech Republic and Romania
underlined the effects of the second wave of the pandemic on the
region.
Czech headline inflation eased to a two-year low in
December, putting the year-on-year rate at 2.3%. Retail sales
excluding cars and motorcycles fell by 7.0% year-on-year in
November.
Romania"s adjusted industrial output fell 0.6% month-on-
month in November, and was up 0.4% from a year ago.
Budapest"s stocks were up 0.82%. Warsaw"s equities
were down 0.94%, while Bucharest gained 0.78%
and Prague firmed 0.09%.
CEE SNAPSHO AT
MARKETS T 1628 CET
CURRENC
IES
Latest Previous Daily Change
bid close change in 2021
EURCZK= Czech
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