Poland’s bond yields fell to a record on speculation today’s interest-rate cut by the European Central Bank and local manufacturing plunging to a 3 1/2-year low will put pressure on the nation’s policy makers to further cut rates.
Poland’s manufacturing shrank the most in 45 months in April, a sign that the European Union’s largest eastern economy continued to slow and may need more interest- rate cuts, according to HSBC Holdings Plc.
Hungary’s central bank will probably lower its benchmark interest rate to a record low as investors focus on the possibility of new President Gyorgy Matolcsy deploying unconventional measures to end a recession.
Poland’s currency strengthened against the euro, paring the worst quarterly decline in 18 months, after two Monetary Policy Council members signaled the central bank wasn’t considering further interest rate cuts.
Hungarian consumer prices rose at the slowest pace in almost seven years in February as the government cut household energy costs, making room for the central bank’s new management to lower interest rates further.
Hungarian consumer prices rose at the slowest pace in 19 months as the government cut household energy costs, strengthening the case for the central bank’s new management to press on with interest-rate reductions.