Zloty pulls back as ECB rate cuts could pressure hawkish NBP

WARSAW, Dec 12 - The zloty drifted further from a 2-1/2 month high on Thursday with analysts saying recent hawkishness from the Polish central bank could be undermined by further rate cuts from the European Central Bank. By 0951 GMT the zloty was down 0.3% at 4.2810, having hit its strongest level since late September on Monday, at 4.2550, following comments from Polish central bank governor Adam Glapinski last week who pushed back the prospect of interest rate cuts beyond 2025, citing inflation risks. "If the ECB decides to cut rates by 50 bps today and/or presents a very mild statement, then investors may again question whether the hawkish message from the NBP Governor.about the postponement of the discussion on rate cuts until October next year will stand the test of time." CEE SNAPSHOT AT MARKETS 1051 CET CURRENCI ES Latest Previous Daily Change trade close change in 2024 Czech 25.0650 25.0750 0.04% -1.45% crown Hungary 410.0500 409.7900 -0.06% -6.55% forint Polish 4.2810 4.2687 -0.29% 1.48% zloty Romanian 4.9699 4.9672 -0.05% 0.09% leu Serbian 116.9300 116.9800 0.04% 0.27% dinar Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2024 Prague 1735.62 1722.320 0.77% 22.74% 0 Budapest 80469.64 80530.65 -0.08% 32.74% Warsaw 2278.04 2296.10 -0.79% -2.77% Bucharest 17358.43 17394.91 -0.21% 12.93% Spread Daily vs Bund change in Czech spread Republic 2-year 5-year 10-year Poland 2-year 5-year 10-year FORWARD 3x6 6x9 9x12 3M interban k Czech Rep < 3.86 3.71 3.56 3.90 PRIBOR=> Hungary < 6.93 6.58 6.26 6.50 BUBOR=> Poland < 5.71 5.33 4.97 5.85 WIBOR=> Note: FRA are for ask prices quotes ************************************************** ************