WARSAW, August 24 (Reuters) – Central European currencies strengthened on Tuesday, with the Hungarian forint EURHUF = the biggest winner ahead of a central bank meeting where policymakers are expected to continue a round of tightening they started in June.

The National Bank of Hungary (NBH) was the first in the European Union to start increasing borrowing costs, and it has pledged to “take firm action” to contain higher than expected inflation after raised rates by 30 basis points in July.

Analysts polled by Reuters expect another 30 basis point hike to 1.5% on Tuesday.

“The move has been fully captured by the markets – in fact, based on 3×6 month futures, another similarly sized step is arguably also taken into account,” Commerzbank wrote in a note.

At 08:34 GMT, the forint strengthened 0.26% against the euro to 349.25. Czech crown EURCZK = was 0.14% firmer at 25.5260 while the Polish zloty EURPLN = changed little at 4.5820.

Unlike the Hungarian and Czech central banks, the National Bank of Poland has so far kept rates unchanged at a record high and the zloty has underperformed its regional peers.

“… The lack of interest rate hikes has been visible in recent weeks when the CZK and HUF have been slightly stronger,” PKO BP said in a note. “Tuesday’s decision by the BNH on interest rates may contribute to a wider spread between these currencies.”

Polish 10-year bond yield PL10YT = RR was little changed at 1.747%, while the Czech 10-year rate CZ10YT = RR fell 2 basis points to 1.821%.

“The likely increase in the main (Hungarian) interest rate by 30 basis points to 1.50% could create short-term pressure on the growth of yield curves in the EEC-3 region,” said PKO BP.

CEEC MARKETS

INSTANTANEOUS

At 1034 CET

COINS

Latest

Previous

Daily

Switch

offer

close

cash

in 2021

EURCZK =

czech crown

EURCZK =

25.5260

25.5610

+ 0.14%

+ 2.75%

EURHUF =

Hungarian forint

EURHUF =

349.2500

350.1500

+ 0.26%

+ 3.86%

EURPLN =

Polish Zloty

EURPLN =

4.5820

4.5843

+ 0.05%

-0.50%

EURRON =

leu in Romanian

EURRON =

4.9290

4.9300

+ 0.02%

-1.30%

EURHRK =

Croatian Kuna

EURHRK =

7.4940

7.4950

+ 0.01%

+ 0.71%

EURRSD =

Serbian dinar

EURRSD =

117.4800

117.5800

+ 0.09%

+ 0.08%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Switch

close

cash

in 2021

.PX

Prague

.PX

1284.88

1283.1000

+ 0.14%

+ 25.09%

.BUX

Budapest

.BUX

51887.08

52023.19

-0.26%

+ 23.23%

.WIG20

Warsaw

.WIG20

2291.19

2287.52

+ 0.16%

+ 15.48%

.BETI

Bucharest

.BETI

12189.82

12167.22

+ 0.19%

+ 24.31%

.SBITOP

Ljubljana

.SBITOP

1193.74

1201.67

-0.66%

+ 32.51%

.CRBEX

Zagreb

.CRBEX

1960.98

1956.26

+ 0.24%

+ 12.75%

.BELEX15

Belgrade

.BELEX15

798.12

800.12

-0.25%

+ 6.61%

.SOFIX

Sofia

.SOFIX

570.56

565.93

+ 0.82%

+ 27.49%

Yield

Yield

Broadcast

Daily

(offer)

cash

against the Bund

switch

Czech Republic

broadcast

CZ2YT = RR

2 years

CZ2YT = RR

1.6640

0.0020

+241 bp

+ 0bps

CZ5YT = RR

5 years

CZ5YT = RR

1.7700

-0.0220

+251 bp

-2bps

CZ10YT = RR

10 years

CZ10YT = RR

1.8210

-0.0200

+ 230bps

-2bps

Poland

PL2YT = RR

2 years

PL2YT = RR

0.3900

-0.0830

+ 114bps

-9bps

PL5YT = RR

5 years

PL5YT = RR

1.0950

-0.0030

+184 bp

+ 0bps

PL10YT = RR

10 years

PL10YT = RR

1.7470

0.0040

+223 bp

+ 1bps

CHEEKY

3×6

6×9

9×12

3M Interbank

Czech Republic

CZKFRAPRIBOR =

1.64

2.08

2.22

0.97

Hungary

HUFFRABUBOR =

2.15

2.25

2.34

1.42

Poland

PLNFRAWIBOR =

0.42

0.65

0.87

0.21

Note: quotes from FRA

are for the asking prices

*************************************************** ************

(Report by Alan Charlish in Warsaw and Anita Komuves in Budapest Editing by Tomasz Janowski)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.