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CEE MARKETS-Crown steady ahead of c.bank meeting, stocks rise

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By Anita Komuves BUDAPEST, Aug 5 (Reuters) - The Czech crown held steady on Thursday ahead of an expected rate hike later in the day, a little over a month after the central bank started tightening policy to fight inflation. All 11 analysts in a Reuters poll saw the key two-week repo rate rising by 25 basis points to 0.75%. According to the forward-rate agreements, the market is pricing in three more hikes within the next six months. The Czech central bank will also update its macroeconomic outlook on Thursday, which markets will eye to gauge the future path of monetary policy. A 25 basis-point hike is already priced in and is unlikely to affect the crown's exchange rate, Commerzbank wrote. "The statement accompanying the rate decision would have to be significantly more hawkish for the koruna to appreciate more significantly and sustainably than expected by us." The crown edged up 0.1% to trade at 25.426 versus the common currency. Elsewhere, the Polish zloty slid 0.19% to 4.555 to the euro. The forint edged up 0.03% to 354.40 per euro, following steady gains that started last week after the central bank hiked its base rate again. "Liquidity is very low, and strengthening of the dollar that started yesterday could stop recent gains in the CEE region," an FX trader in Budapest said. The dollar gained after hawkish comments from a top U.S. Federal Reserve official led markets to move forward the likely timing of a policy tightening. A Reuters poll on Thursday showed analysts expect the crown and the forint to extend gains in the coming year as central banks hike rates to curb inflation during the post-pandemic recovery. The Polish zloty, which has been an underperformer, is also seen gaining in the next 12 months, even though the country's central bank has maintained its dovish stance. Stocks in Prague and Budapest extended their gains, scaling new highs for the third session. Prague added 0.35% and reached a 10-year high while Budapest gained 0.42% and scaled another peak. Warsaw's stocks slid 0.21% and Bucharest was 0.17% lower. CEE SNAPSHO AT MARKETS T 1053 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech EURHUF= Hungary 0 EURPLN= Polish EURRON= Romania EURHRK= Croatia EURRSD= Serbian 0 Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1231.86 1227.540 +0.35% +19.93 0 % .BUX Budapes 49955.5 49745.57 +0.42% +18.64 t 0 % .WIG20 Warsaw 2267.37 2272.09 -0.21% +14.28 % .BETI Buchare 11782.5 11802.49 -0.17% +20.16 st 7 % .SBITOP Ljublja <.SBITOP 1173.25 1172.85 +0.03% +30.24 na > % .CRBEX Zagreb 1957.25 1957.25 +0.00% +12.53 % .BELEX1 Belgrad <.BELEX1 776.11 776.11 +0.00% +3.67% 5 e 5> .SOFIX Sofia 574.36 573.39 +0.17% +28.34 % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republi c CZ2YT=R s CZ5YT=R s CZ10YT= s Poland PL2YT=R s PL5YT=R s PL10YT= s FORWARD 3x6 6x9 9x12 3M interba nk Czech 1.44 1.80 1.98 0.80 Rep Hungary 2.03 2.21 2.32 1.35 Poland 0.40 0.56 0.74 0.21 Note: are for ask FRA prices quotes ********************************************* ***************** (Additional reporting by Robert Muller in Prague; Editing by Ramakrishnan M.)