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CEE MARKETS-Forint falls despite robust CEE growth, central banks hold fire

* GDP growth in CEE is higher than forecast * Wage surge fuels inflation, export outlook uncertain * Forint at lowest in seven months, bond yields fall * Polish, Romanian central banks keep rates on hold * Budapest stocks rebound (Adds Polish and Romanian central bank decisions and comments) By Sandor Peto and Luiza Ilie BUDAPEST, May 15 (Reuters) - The forint fell on Wednesday to its weakest level against the euro since October after robust first-quarter economic data from Central Europe failed to ease concerns over inflation in the region and growth in Europe.

The Romanian and the Polish central banks kept their interest rates on hold at their respective policy meetings on Wednesday.

Meanwhile, figures out on Wednesday from the Czech Republic, Hungary, Poland, Romania and Slovakia showed gross domestic product (GDP) growing faster than expected on an annual basis.

However the forint touched a seven-month low of 325.8 against the euro before recovering to 324.87 by late trade, still weaker by 0.1%.

Hungary's growth picked up to 5.3%, its fastest rate in 15 years. But the news coincided with a confirmation from German car maker Daimler that it had postponed further expansion of a Hungarian plant.

"While these (GDP data) releases (in Central Europe) were bullish, trade tensions loom large as a near-term risk," Morgan Stanley analyst Pasquale Diana said in a note.

"Also, recent announcements on auto FDI (Hungary) highlight more structural challenges for the region," Diana added.

Domestic demand remains the key to economic growth in Central Europe, while a slowdown in the euro zone, the region's key export market, is causing concern, as does the threat of U.S. tariffs on European car imports.

The Hungarian central bank (NBH) is unlikely to tighten policy at its meeting later this month since GDP growth may slow and the bank expects a retreat in inflation late this year, market participants said.

INFLATION While Hungary's inflation is near the NBH's 2-4% target range, Poland's inflation is well within the 1.5-3.5% goal.

There is no need to change Polish interest rates until the end of the Monetary Policy Council's term in 2022, governor Adam Glapinski said after an MPC meeting on Wednesday.

The zloty, which touched a 10-week low against the euro in early trade, rebounded later, to trade at 4.3025, firmer by 0.1% from Tuesday, as the central bank's comments caused no surprise.

Polish government bond yields fell in tandem with their Hungarian peers, tracking Bunds. Hungary's 10-year yield was fixed at 3.13%, dropping 4 basis points to its lowest level in 5 weeks.

The leu eased slightly to 4.7615 versus the euro, even though Romanian central bank Governor Mugur Isarescu said policymakers would continue to use market liquidity operations to tighten monetary policy.

Regional equities gained, tracking a rebound in Asia caused by hopes that the United States and China will resolve their trade dispute. Leading the way was a 0.9% rise for Budapest's bluechip index, which had hit a three-month low in Tuesday's session.

CEE SNAPSHOT AT MARKETS 1651 CET CURRENCI ES Latest Previous Daily Change bid close change in 2019 Czech Hungary Polish Romanian Croatian Serbian Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2019 Prague 1052.07 1050.310 +0.17% +6.64% 0 Budapest 40428.29 40084.64 +0.86% +3.29% Warsaw 2174.26 2163.94 +0.48% -4.50% Bucharest 8174.16 8135.82 +0.47% +10.71% Ljubljana <.SBITOP 863.47 863.12 +0.04% +7.36% > Zagreb 1837.12 1840.89 -0.20% +5.05% Belgrade <.BELEX1 733.01 735.08 -0.28% -3.77% 5> Sofia 566.36 563.42 +0.52% -4.73% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 5-year 10-year Poland 2-year 5-year 10-year FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.22 2.22 2.19 2.20 (PRIBOR= ) Hungary 0.34 0.50 0.68 0.16 Poland 1.74 1.75 1.76 1.72 Note: FRA are for ask prices quotes ************************************************* ************* (Reporting by Sandor Peto, editing by Larry King)