The forint weakened for the first time in more than a week and yields fell to a three-year low at a Treasury-bill sale as Hungary’s recession deepened and inflation slowed, fueling speculation for interest-rate cuts.
The forint halted its longest losing streak in eight months and Hungary’s yields fell to a 2 1/2-year low as the central bank cut interest rates for a sixth month and cautioned on the use of new unconventional policy measures.
Estonia’s economy, which exited the European Union’s third-deepest recession in the fourth quarter, contracted in the first three months of this year as consumers and companies refrained from spending and investment.
Euro adoption has helped Estonia distance itself from all but the strongest European economies in terms of credit risk as eastern states such as Poland waver in their ardor for the currency, shaken by a sovereign-debt crisis.
Russia’s economy expanded for the first time since 2008 in the three months through March as the world’s biggest energy producer rebounds on an oil-funded stimulus program and record-low borrowing costs.