ING: Higher Rates to Stabilize CEE Currencies as Oil, Gas Spike

According to ING analyst Frantisek Taborsky, the recent surge in oil and gas prices has led to a sharp hawkish repricing of policy paths in Poland, the Czech Republic and Hungary. This repricing has taken implied tightening back to levels seen during the stressed March-April period.

Taborsky argues that higher interest rates will help stabilize regional currencies (CEE FX). The report comes as energy price volatility continues to impact central bank policy expectations in Central and Eastern Europe.