East European divergence

This week, Brian Daingerfield and Eimear Daly focus on FX in Eastern Europe, and discuss how varied central bank approaches affect currencies in different ways. In Hungary, political confrontation with the EU over aid to Ukraine eventually dissipated, but other risks raise problems about the forint. In Poland, a new government face challenges in unwinding eight years of nationalist, populist rule, and despite falling inflation, rates look likely to be on hold for the rest of the year. Lastly in the Czech Republic, a 50-base point rate cut surprise saw a big decline in the koruna.    Remember to hit ‘subscribe’ or ‘follow’ so you can watch or listen to the latest episode of Currency Exchange as soon as they’re available.  NB: This was recorded on 8 February 2024. For any terms used please refer to this glossary:  https://www.natwest.com/corporates/insights/markets/glossary.html Please view our full disclaimer here: https://www.natwest.com/corporates/disclaimer.html