The central European currencies were little changed on Tuesday. The zloty slightly appreciated against the single currency and hit the strongest level since 18th October. The polish 5-year government bond yield dropped by approximately 5 basis points on Greek debt deal. The forint was little changed despite the fact that NBH decided to cut interest rates by additional 25 bps. On the other hand, the Czech koruna moved north above EUR/CZK 25.330 and is expecting the debate about the budget for 2013. NBH delivered a 25 bps interest rate cut that was the fourth in a row and in line with market expectations. The bank decided to easy its monetary conditions despite still high inflation (6% in October) to support the struggling economy (especially its domestic part). The earlier released data showed that GDP contracted for the third consecutive quarter in Q3 2012. Therefore, it is reasonable to expect further monetary policy easing if the situation in the markets remains stable. Despite the rate cut, the forint stays relatively strong and close to EUR/HUF 280.0. The Polish finance minister Rostowski said he could not rule out the slowdown of economic growth in H1 2013. Moreover, he admitted a contraction at some point next year although it is not what the government was expecting. The recovery is awaited in H2 2013 and in 2014.