BUDAPEST/WARSAW: Central European currencies mostly eased on Wednesday as the Polish central bank kept interest rates on hold and its governor said a hike before 2019 was unlikely.
The zloty, the forint and the leu weakened by 0.1-0.2 percent against the euro by 1451 GMT.
Regional equities rose, however, tracking a rebound in global share markets due to expectations that the minutes of the Federal Reserve's last meeting later on Wednesday will not add to recent hawkish signals from central banks in the world.
Central banks in the European Union's eastern wing have mostly remained dovish.
The Hungarian central bank confirmed in the minutes of its June meeting that it stood ready to ease monetary conditions if needed, adding that inflation remained moderate.
The Polish central bank echoed that after its meeting.
Its new inflation and GDP forecasts showed little change and its governor Adam Glapinski said the new projections only strengthened his view that interest rates would not be changed this year and next.
Upcoming economic figures, if they show higher inflation pressure, may trigger expectations for a shift to more hawkish rhetoric and help support the zloty, analysts have said.
Erste analyst Katarzyna Rzentarzewska said inflation could remain below the bank's target in the medium term.
"The economy should continue to expand at robust pace, however, is not enough to change the MPC's (central bank's)stance," she said in a note.
Glapinski himself did not rule out the possibility that the bank may discuss rate changes before the end of 2018. Rate-setter Eugeniusz Gatnar said it was a risk that negative inflation-adjusted interest rates could hurt savings.
In regional equities markets, Romanian shares led the rise, with Bucharest's main index gaining more than 2.5 percent.
The index touched a 4-1/2-month low on Tuesday as investors fretted about Romania's proposal to overhaul its corporate tax system and shift to a progressive tax on a company's turnover, replacing its flat 16 percent corporate tax rate.
But on Wednesday the market drew relief from speculation in the Romanian media that the reform would be watered down in the planning process.
The ruling leftists' fiscal plans have kept Romanian markets on edge this year, fuelling worries that the budget deficit and inflation could rise.
Romanian central bank Governor Mugur Isarescu told a banking seminar on Tuesday that policymakers would not start hiking interest rates before inflation rebounded, but that higher price growth was inevitable.
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