Free Trial

### POV: PLN WELL POSITIONED TO BEAT...>

POLISH ZLOTY
POLISH ZLOTY: ### POV: PLN WELL POSITIONED TO BEAT HUF ON ANY PROTRACTED CEE
WEAKNESS
-As Eastern Europe's largest energy importer, the rallying oil price in PLN
terms could become increasingly important for the Polish central bank's
inflation profile. Oil priced in PLN has rallied over 40% in the past year,
potentially pushing CPI closer to 3% by the year's end. In turn, the resulting
inflationary pressure may force the central bank to re-assess their record low
rates.
-This contrasts with Hungary, which may come under further pressure to boost
liquidity as 10y swap rates have nearly doubled in 2018, rising to 2.5% as the
central bank initially refused to boost swap supply in February. Nonetheless,
the operation now totals HUF 1.8trillion - a new high. This willingness to
remain flexible despite rate risk concerns and a poor budget deficit (albeit
partly due to election-related spending) make it increasingly unlikely the bank
will turn off the liquidity taps, thereby keeping a lid on the HUF.
-See MNI Analysis email for full details.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.