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UPDATE 1-CEE MARKETS-Crown higher after cenbank halts tightening cycle, pledges to keep crown stable

 (Updates with Czech cenbank decision, market reaction)
    By Anita Komuves and Robert Muller
    BUDAPEST/PRAGUE, Aug 4 (Reuters) - The Czech crown firmed on
Thursday after the central bank kept rates unchanged, becoming
the first in central Europe to halt a year-long tightening
cycle, and said it would continue to prevent excessive
fluctuations of the crown.
    The crown was up 0.34% and trading at 24.566 per
euro after the decision that left the key two-week repo rate at
7%, interrupting a series of nine consecutive rate hikes that
started in June last year.
    The Czech crown, the best performer in CEE so far this year
as the central bank has intervened against weakening pressures
since May, gained as the bank said it would continue preventing
excessive fluctuations of the crown.
    A thin majority in a Reuters poll published on Monday
expected the Czech National Bank (CNB) to leave rates unchanged.

    Thursday's rate meeting was the first under new Governor
Ales Michl, who has opposed rate hikes in the past year, arguing
that prices were increasing because of supply-side effects which
the central bank cannot control.
    Investors were looking ahead to Michl's press conference
scheduled for 1345 GMT.
    Komercni Banka trader Marek Lesko, who expected rates to
stay on hold, wrote before the decision that "further down the
line, the market sees some more tightening in September with the
implied peak repo rate around 7.40%."
    The crown was forecast to rise 0.6% in the next year, to
24.50 to the euro, in a Reuters poll on Thursday. 
    Analysts in the poll expected the Hungarian forint to stay
on the back foot in the coming months before returning to steady
gains while the Polish zloty was also seen getting back to
moderate gains.
    The forint eased 0.39% to 395.75 per euro on
Thursday after the central bank left its one-week deposit rate
unchanged at 10.75% at a weekly tender, as expected.
 
    The zloty weakened 0.57% to 4.7230 against the
common currency while the Romanian leu edged down
0.06% to 4.9275.
    
    
                  CEE         SNAPSH   AT                   
                  MARKETS     OT      1525            
                                      CET             
                              CURREN                        
                              CIES                    
                              Latest  Previo  Daily   Change
                                      us              
                              bid     close   change  in
                                                      2022
 EURCZK  Czech                24.566  24.650   +0.34   +1.25
 =       crown                     0       0       %       %
 EURHUF  Hungary              395.75  394.20  -0.39%  -6.66%
 =       forint                   00      00          
 EURPLN  Polish               4.7230  4.6960  -0.57%  -2.79%
 =       zloty                                        
 EURRON  Romania              4.9275  4.9247  -0.06%   +0.42
 =       n leu                                             %
 EURHRK  Croatia              7.5120  7.5175   +0.07   +0.07
 =       n kuna                                    %       %
 EURRSD  Serbian              117.38  117.39   +0.01   +0.17
 =       dinar                    00      00       %       %
         Note:    calculated from             1800          
         daily                                CET     
         change Latest  Previo  Daily   Change
                                      us              
                                      close   change  in
                                                      2022
 .PX     Prague               1230.8  1225.2   +0.46     
                                   3     100       %  
 .BUX    Budapes              43487.  42931.   +1.30  -14.26
         t                        80      04       %       %
 .WIG20  Warsaw               1685.4  1688.0  -0.15%  -25.65
                                   2       3               %
 .BETI   Buchare              12586.  12476.   +0.88  -3.64%
         st                       30      59       %  
 .SBITO  Ljublja              1152.7  1142.4   +0.90  -8.18%
 P       na                        1       2       %  
 .CRBEX  Zagreb               1964.0  1961.6   +0.12  -5.55%
                                   5       6       %  
 .BELEX  Belgrad              842.51  841.27   +0.15   +2.65
 15      e                                         %       %
 .SOFIX  Sofia                606.83  599.85   +1.16  -4.54%
                                                   %  
                                                            
                              Yield   Yield   Spread  Daily
                              (bid)   change  vs      change
                                              Bund    in
         Czech                                        spread
         Republi                                      
         c                                            
 CZ2YT=                       6.1310  -0.023   +577b   +0bps
 RR      2-year                            0      ps  
 CZ5YT=                       4.7610  -0.057   +418b   -3bps
 RR      5-year                            0      ps  
 CZ10YT           <CZ10YT=RR  4.0300  0.0330   +320b   +7bps
 =RR     10-year  >                               ps  
         Poland                                             
 PL2YT=                       6.8810  -0.219   +652b  -20bps
 RR      2-year                            0      ps  
 PL5YT=                       6.1670  -0.133   +558b  -11bps
 RR      5-year                            0      ps  
 PL10YT           <PL10YT=RR  5.6240  -0.170   +479b  -14bps
 =RR     10-year  >                        0      ps  
                  FORWARD                                   
                              3x6     6x9     9x12    3M
                                                      interb
                                                      ank
         Czech            <P    7.47    7.43    7.07    7.31
         Rep      RIBOR=>                             
         Hungary          <B   13.59   13.62   13.00   12.03
                  UBOR=>                              
         Poland           <W    7.31    7.31    7.04    7.01
                  IBOR=>                              
         Note:    are for ask prices                        
         FRA                                          
         quotes                                       
         *******************************************        
         *******************                          
 
    
    
    
    

 (Reporting by Anita Komuves in Budapest and Robert Muller in
Prague with additional reporting by Pawel Florkiewicz in Warsaw
Editing by Tomasz Janowski)
  
 
 
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