The rise in global rates caught the market when it was very complacent about the region, causing a sell-off in the zloty. If we see a further rate cut in Poland, the yield differential over the euro-zone will have shrunk, and only investors with a very strong currency call will stay in the market.

171

Early elections have been brought forward, forcing investors to take a closer look at Slovak politics. We may still see some further weakness.

165

Inflation is going up and they have to do something to control it. The economy has been doing extremely well and the koruna will probably keep strengthening.

144