BUCHAREST, July 13 (Reuters) - The Czech crown touched a one-week high on Tuesday as inflation exceeded market expectations and reinforced views of another interest rate hike in August, while other central and eastern European currencies were mixed. Czech headline inflation eased less than expected in June to a rate of 2.8% year-on-year, sticking near the top end of the central bank's target range. "The Czech National Bank has open space for another rate rise already at its August meeting after today's data," UniCredit economist Patrik Rozumbersky said. In June, the Czech and Hungarian central banks became the European Union's first policymakers to tighten interest rates since the pandemic hit, faced with strong inflationary pressures. By 0850 GMT, the Czech crown was up 0.3% against the euro on the day at 25.6140. Elsewhere in the region, the Romanian leu was flat against the euro despite inflation rising to a higher-than-expected 3.94%. Earlier this month, Romanian central bank Governor Mugur Isarescu said the bank did not plan to hike its benchmark interest rate at its August meeting, but that it had already started a tighter control of market liquidity. Analysts did not expect the bank to hike borrowing costs this year, as Romania's benchmark rate - while at a record low - was still higher compared to its regional peers. "So far, the central bank reaction to higher inflation has been relatively limited, which we expect to be the case for the rest of 2021," said ING Bank Romania chief economist Valentin Tataru. "Should inflation be more demand-driven earlier than currently expected, we might see rate hikes starting as soon as 4Q20." The Hungarian forint and Polish zloty were each down 0.2% on the day. Stocks in the region were mixed, with Warsaw up 0.8%, Budapest up 0.2%, Prague down 0.2% and Bucharest flat. CEE SNAPSHO AT MARKETS T 1117 CET CURRENC IES Latest Previou Daily Change s bid close change in 2021 Czech <EURCZK= 25.6590 25.6900 +0.12% +2.22% crown > Hungary <EURHUF= 356.400 355.800 -0.17% +1.77% forint > 0 0 Polish <EURPLN= 4.5658 4.5550 -0.24% -0.14% zloty > Romanian <EURRON= 4.9285 4.9270 -0.03% -1.29% leu > Croatian <EURHRK= 7.4898 7.4940 +0.06% +0.77% kuna > Serbian <EURRSD= 117.520 117.530 +0.01% +0.04% dinar > 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2021 Prague 1156.88 1159.44 -0.22% +12.63 00 % Budapest 47987.7 47804.2 +0.38% +13.96 7 6 % Warsaw 2276.20 2255.48 +0.92% +14.73 % Buchares 11960.8 11967.8 -0.06% +21.98 t 6 0 % Ljubljan <.SBITOP 1139.08 1133.50 +0.49% +26.45 a > % Zagreb 1952.21 1958.38 -0.32% +12.24 % Belgrade <.BELEX1 771.41 773.56 -0.28% +3.05% 5> Sofia 565.69 563.91 +0.32% +26.40 % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 0.4320 -0.0340 +110bp -3bps R> s 5-year <CZ5YT=R 1.6620 0.0200 +226bp +2bps R> s <CZ10YT= 1.7940 0.0040 +209bp +0bps 10-year RR> s Poland 2-year <PL2YT=R 0.4410 0.0580 +111bp +6bps R> s 5-year <PL5YT=R 1.2580 -0.0280 +186bp -3bps R> s <PL10YT= 1.6880 -0.0150 +199bp -2bps 10-year RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech 1.07 1.37 1.60 0.67 Rep <PRIBOR= > Hungary 1.68 2.03 2.21 1.07 Poland 0.28 0.41 0.58 0.21 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Luiza Ilie in Bucharest, Jason Hovet in Prague, Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Amy Caren Daniel)
Our Standards: The Thomson Reuters Trust Principles.