For the best forint forecaster, Prime Minister Viktor Orban’s push to stamp out foreign-currency mortgages is another reason to sell amid record-low interest rates and a government drive to boost local ownership of banks.
Lithuania’s new government emerging from this weekend’s elections will have to keep cutting the budget deficit or risk higher interest rates, said Lars Christensen, chief emerging-markets economist at Danske Bank A/S.
The South African rand’s rebound this month will persevere through year-end, then reverse with the currency tumbling during most of 2014, according to the most accurate forecaster in the third quarter.
Czech policy makers who have said interest rates are too low “might be wrong” as inflation remains subdued and an early rate increase may “risk derailing the fragile recovery,” Danske Bank A/S said today.
Investors in Polish interest-rate swaps may profit by betting that borrowing costs will not rise this year or in 2011, Danske Bank AS said in a recommendation that runs counter to economists’ projections and market gauges.