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CEE MARKETS-Hungary's forint leads gains on rate hike expectations, markets eye Polish cenbank

    BUCHAREST, June 9 (Reuters) - The Hungarian forint led gains
among central and eastern European currencies on Wednesday as
the central bank bolstered expectations of a rate hike later
this month, while the Polish zloty was also firmer ahead of a
central bank meeting.
    Hungary's central bank pledged to launch a decisive
tightening cycle at its June 22 meeting to tackle inflation
risks, its governor said on Wednesday.
    A hike would make Hungary the first European Union country
to start raising rates, but it could soon be followed by the
Czech central bank as the region's inflation rates are the
highest in the EU with economies recovering quickly from the
pandemic.
    By 1000 GMT, the forint was up 0.4% against the
euro at 347.1500. The Polish zloty and the Czech crown
 were each up 0.2%. 
    Poland's central bank is expected to leave its main interest
rate unchanged at 0.1% at its rate-setting meeting on Wednesday,
although inflation stood well above target at 4.8% in May. 
    While central bank governor Adam Glapinski has previously
said that rates are likely to remain on hold until 2022, some
economists now expect a rate hike this year.
    "The MPC's wording might become increasingly restrictive,
for example by stating that inflation risks are to the upside or
that rate hikes might have to be debated over the coming months
rather than in mid-2022," Commerzbank said in a note.
    "We nonetheless remain cautious: even in case of a symbolic
rate hike the real interest rate will remain clearly in negative
territory over the coming quarters and will prevent a
sustainable appreciation trend of the zloty medium-term."
    Elsewhere in the region, the Romanian leu was flat
on the day. Analysts expect Romania's central bank to keep rates
on hold at 1.25% throughout this year. Policymakers expect
inflation at 4.1% in December, above their 1.5-3.5% target.
    Stocks in the region were mixed, with Bucharest's bluechip
index up 0.6% and Prague's equities 0.3% higher.
Budapest's was down 1.4% and Warsaw's inched
0.2% lower. 
        
           CEE       SNAPSHO   AT                      
           MARKETS   T        1215              
                              CET               
                     CURRENC                           
                     IES                        
                     Latest   Previou  Daily    Change
                              s                 
                     bid      close    change   in 2021
 Czech     <EURCZK=  25.3850  25.4250   +0.16%   +3.32%
 crown     >                                    
 Hungary   <EURHUF=  347.150  348.690   +0.44%   +4.49%
 forint    >               0        0           
 Polish    <EURPLN=   4.4540   4.4645   +0.24%   +2.36%
 zloty     >                                    
 Romanian  <EURRON=   4.9235   4.9240   +0.01%   -1.19%
 leu       >                                    
 Croatian  <EURHRK=   7.4955   7.4983   +0.04%   +0.69%
 kuna      >                                    
 Serbian   <EURRSD=  117.490  117.585   +0.08%   +0.07%
 dinar     >               0        0           
 Note:     calculated from             1800            
 daily                                 CET      
 change Latest   Previou  Daily    Change
                              s                 
                              close    change   in 2021
 Prague              1181.22  1177.99   +0.27%   +15.00
                                   00                 %
 Budapest            47821.5  48546.4   -1.49%   +13.57
                           6        5                 %
 Warsaw              2232.84  2237.61   -0.21%   +12.54
                                                      %
 Buchares            11387.5  11317.4   +0.62%   +16.13
 t                         4        0                 %
 Ljubljan  <.SBITOP  1130.73  1135.59   -0.43%   +25.52
 a         >                                          %
 Zagreb              1950.21  1949.56   +0.03%   +12.13
                                                      %
 Belgrade  <.BELEX1   782.34   780.08   +0.29%   +4.51%
           5>                                   
 Sofia                538.09   535.17   +0.55%   +20.24
                                                      %
                                                       
                     Yield    Yield    Spread   Daily
                     (bid)    change   vs Bund  change
                                                in
 Czech                                          spread
 Republic                                       
   2-year  <CZ2YT=R   0.3020  -0.0170   +097bp    -1bps
           R>                                s  
   5-year  <CZ5YT=R   1.5100  -0.0120   +213bp    +1bps
           R>                                s  
           <CZ10YT=   1.7250  -0.0060   +197bp    +1bps
 10-year   RR>                               s  
 Poland                                                
   2-year  <PL2YT=R   0.4730   0.0500   +115bp    +6bps
           R>                                s  
   5-year  <PL5YT=R   1.2910  -0.0210   +191bp    +0bps
           R>                                s  
           <PL10YT=   1.8450  -0.0320   +209bp    -1bps
 10-year   RR>                               s  
           FORWARD                                     
                     3x6      6x9      9x12     3M
                                                interba
                                                nk
 Czech                  0.74     1.00     1.32     0.41
 Rep       <PRIBOR=                             
           >                                    
 Hungary                1.32     1.55     1.71     0.92
                                                
 Poland                 0.38     0.57     0.78     0.21
                                                
 Note:     are for ask                                 
 FRA       prices                               
 quotes                                         
 *********************************************         
 *****************                              
 
 (Reporting by Luiza Ilie in Bucharest, Anita Komuves in
Budapest and Alan Charlish in Warsaw; Editing by Kirsten
Donovan)
  
 
 
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