CEE MARKETS 2-FX calm, Polish debt stronger on rate cut talk

(Adds bond market, updates currency prices)

* Central European currencies a touch stronger in calm trade

* Romania's leu stronger on accelerating inflation

* Serbia's dinar continues rise after rate hike

* Polish bonds stronger on dovish central banker comments

By Karolina Slowikowska

WARSAW, Oct 10 (Reuters) - Central European currenciesfirmed in early trade on Wednesday, recovering after the IMF'scut to its global and regional growth forecasts soured investorsentiment early in the week.

Comments by Polish central bank policymakers suggesting aninterest rate cut will come next month helped trim yields onPoland's bonds but had little impact on the zloty, the region'smost liquid currency.

Comments by Polish Prime Minister Donald Tusk saying that anexchange rate of 4.5 zlotys to the euro - much weaker thancurrent rates of around 4.09 - would be good for the economyalso had little immediate impact.

At 0930 GMT, the zlotywas flat while theHungarian forintand the Czech crown were 0.2 percentstronger against the euro each.

"Things are relatively quiet in the region today, volatilityis at a low level," said Karol Zaluski, chief currency dealer atING Bank in Warsaw. Other dealers also said Wednesday's sessionwas likely to be calmer after the hit to valuations from theInternational Monetary Fund.

The IMF said on Tuesday that the global economic slowdownwas worsening and predicted growth in central and eastern Europewould more than halve to 2.0 percent this year and rise to just2.6 percent in 2013.

Dovish remarks by Polish MPC members offered a clearerindication of where rates are going after the central banksurprised markets by leaving borrowing costs unchanged lastweek, aiding bonds.

"We have yields falling 2-3 basis points today, mainly onthe two- and five-year papers. A rate cut now seems like a donedeal," said Maciej Popiel, fixed income dealer at Bank PKO.

MPC member Andrzej Bratkowski, who has been calling for ratecuts for several months now, told Reuters that he would now backeven a big one-off reduction of 75 basis points from a current4.75 percent to help the ailing economy.

Jerzy Hausner, regarded as an inflation hawk, meanwhile toldstate news agency PAP that the bank's inflation projections duenext month could pave the way for monetary easing.

RATESRomania's leu

led gains among the region'scurrencies, rising 0.2 percent after inflation accelerated pastthe central bank's target, effectively reducing the scope forinterest rate cuts needed to boost its languishingeconomy.

The Serbian dinar could continue its recent rise after thecentral bank surprised by raising its benchmark interest rate

by 25 basis points to 10.75 percent on Tuesday,which underpinned the dinar currency.

A dealer with a Belgrade-based commercial bank said therewas a dinar rally against the euro but that it would be a rather"minor one."

In Hungary, debt was relatively stable on Wednesday, withinvestors eyeing the release of minutes from the September 25central bank rate meeting, which may shed some further light onthe rationale behind the second rate cut within a month.

The cut brought the interest rate to 6.5 percent. Thedecision surprised markets and highlighted a deep rift in therate-setting Monetary Council.

"Last week we saw some gains but nothing can jolt the marketout of its current range for the time being," a Budapest-basedfixed income trader said.

"We are drifting and looking out for any further developmentthat can move the market in earnest," the trader said.

--------------------------MARKET SNAPSHOT--------------------

Currency Latest Previous Local Localclose currency currencychange changetoday in 2012Czech crown24.96 24.995 +0.14% +2.34%Polish zloty4.081 4.079 -0.05% +9.4%Hungarian forint282.7 283.36 +0.23% +11.28%Croatian kuna7.49 7.485 -0.07% +0.34%Romanian leu4.566 4.574 +0.18% -5.37%Serbian dinar114.3 114.57 +0.24% -6.43%Yield SpreadsCzech treasury bonds2-yr T-bond CZ2YT=RR -5 basis points to 42bps over bmk*7-yr T-bond CZ7YT=RR +1 basis points to +80bps over bmk*10-yr T-bond CZ9YT=RR +3 basis points to +131bps over bmk*Polish treasury bonds2-yr T-bond PL2YT=RR -2 basis points to +395bps over bmk*5-yr T-bond PL5YT=RR -1 basis points to +363bps over bmk*10-yr T-bond PL10YT=RR -1 basis points to +316bps over bmk*The Hungarian treasury bonds

3-yr T-bond HU3YT=RR -3 basis points to +54bps over bmk*

5-yr T-bond HU5YT=RR -3 basis points to +609bps over bmk*

10-yr T-bond HU10YT=RR -3 basis points to +564bps over bmk*

*Benchmark is German bond equivalent.All data taken from Reuters at 1033 CET.Currency percent change calculated from the daily domesticclose at 1600 GMT.

(Reporting by Reuters bureaux; Writing by Karolina Slowikowska;Editing by Catherine Evans)

((karolina.slowikowska@thomsonreuters.com)(+ 48 22 653 9725)(Reuters Messaging:karolina.slowikowska.thomsonreuters.com@reuters.net))