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CORRECTED-CEE MARKETS-Polish zloty firms on rate hike expectations

 (Corrects exchange rate of Romanian leu in paragraph 7)
    By Anita Komuves
    BUDAPEST, July 5 (Reuters) - Central European currencies
firmed in low liquidity on Monday as U.S. markets were closed
for a holiday, with the Polish zloty outperforming the region
supported by the possibility of sooner-than-expected monetary
policy tightening in Poland.
    The zloty was up 0.23%, trading at 4.5070 versus
the euro common currency. 
    "Liquidity is so low that it can cause bigger jumps in the
rate," an FX trader in Warsaw said. "The zloty is also supported
by the central bank governor who on Friday, for the first time,
did not exclude the possibility of rate hikes."
    Governor Adam Glapinski was quoted in an interview as saying
that "if there are any reasons, for example when inflation is
driven by demand factors, and strong economic growth continues,
we will raise rates."
    Rate hikes in Hungary and the Czech Republic in June fuelled
anticipation of sooner-than-expected tightening in Poland as
well, which buoyed the zloty in the past two weeks. 
    Central banks in Poland and Romania will announce rate
decisions on Thursday, and Glapinski will hold a news conference
on Friday at 1300 GMT.
    The Romanian leu edged up 0.04% to 4.9270. 
    Investors were also eyeing June CPI data in Hungary to be
published on Thursday. 
    "If inflation comes in higher than expected, that can
strengthen rate hike expectations and could support the
currency," an FX trader in Budapest said.
    Central bank deputy governor Barnabas Virag reiterated on
Monday that the National Bank of Hungary would act decisively
and the fastest way possible to counter inflation risks.

    Headline inflation came in at an annual 5.1% in May, below
forecasts but above the central bank's target range of 3% with a
tolerance band of a percentage point on either side. 
    The Hungarian forint slid 0.05% on Monday and was
trading at 351.69.
    Markets in the Czech Republic were closed for a national
holiday on Monday and Tuesday. 
    Stocks in the region were higher, with Warsaw up
0.33% while Budapest gained 0.24%. Bucharest was
0.43% higher.

    
                   CEE       SNAPSHO   AT                       
                   MARKETS   T        1115 CET           
                             CURRENC                            
                             IES                         
                             Latest   Previous  Daily    Change
                             bid      close     change   in 2021
 EURCZK=  Czech    <EURCZK=  25.5680   25.5600   -0.03%   +2.59%
          crown    >                                     
 EURHUF=  Hungary  <EURHUF=  351.690  351.5000   -0.05%   +3.14%
          forint   >               0                     
 EURPLN=  Polish   <EURPLN=   4.5070    4.5174   +0.23%   +1.16%
          zloty    >                                     
 EURRON=  Romania  <EURRON=   4.9270    4.9289   +0.04%   -1.26%
          n leu    >                                     
 EURHRK=  Croatia  <EURHRK=   7.4900    7.4882   -0.02%   +0.77%
          n kuna   >                                     
 EURRSD=  Serbian  <EURRSD=  117.550  117.6050   +0.05%   +0.02%
          dinar    >               0                     
          Note:    calculated from              1800            
          daily                                 CET      
          change Latest   Previous  Daily    Change
                                      close     change   in 2021
 .PX      Prague             1152.13  1152.130   +0.00%   +12.17
                                             0                 %
 .BUX     Budapes            47633.9  47520.42   +0.24%   +13.12
          t                        1                           %
 .WIG20   Warsaw             2259.50   2252.18   +0.33%   +13.89
                                                               %
 .BETI    Buchare            11881.8  11830.90   +0.43%   +21.17
          st                       4                           %
 .SBITOP  Ljublja  <.SBITOP  1125.46   1130.36   -0.43%   +24.93
          na       >                                           %
 .CRBEX   Zagreb             1963.36   1970.32   -0.35%   +12.88
                                                               %
 .BELEX1  Belgrad  <.BELEX1   772.14    772.39   -0.03%   +3.14%
 5        e        5>                                    
 .SOFIX   Sofia               544.12    550.76   -1.21%   +21.58
                                                               %
                                                                
                             Yield    Yield     Spread   Daily
                             (bid)    change    vs Bund  change
                                                         in
          Czech                                          spread
          Republi                                        
          c                                              
 CZ2YT=R           <CZ2YT=R   0.5150    0.0240   +118bp    +2bps
 R        2-year   R>                                 s  
 CZ5YT=R           <CZ5YT=R   1.6850   -0.0560   +228bp    -7bps
 R        5-year   R>                                 s  
 CZ10YT=           <CZ10YT=   1.8420   -0.0020   +206bp    -2bps
 RR       10-year  RR>                                s  
          Poland                                                
 PL2YT=R           <PL2YT=R   0.4290    0.0620   +109bp    +6bps
 R        2-year   R>                                 s  
 PL5YT=R           <PL5YT=R   1.3330    0.0110   +193bp    +0bps
 R        5-year   R>                                 s  
 PL10YT=           <PL10YT=   1.7100    0.0600   +193bp    +5bps
 RR       10-year  RR>                                s  
                   FORWARD                                      
                             3x6      6x9       9x12     3M
                                                         interba
                                                         nk
          Czech                 1.03      1.33     1.63     0.66
          Rep      <PRIBOR=                              
                   >                                     
          Hungary               1.51      1.86     2.03     1.05
                                                         
          Poland                0.31      0.54     0.77     0.21
                                                         
          Note:    are for ask                                  
          FRA      prices                                
          quotes                                         
          *********************************************         
          *****************                              
 


 (Editing by Mark Heinrich)
  
 
 
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