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CEE MARKETS-Zloty off lows as central bank meets, Hungarian data disappoints

* Polish central bank seen holding fire, outlook comments watched

* Zloty off two-week lows, CEE currencies are rangebound

* Investors hold breath ahead of British vote, ECB meeting

* Romania to scale back wage hikes, leu marginally firms

BUDAPEST, June 7 (Reuters) - The zloty traded off two-week lows against the euro on Wednesday as investors waited to see if comments from a Polish central bank meeting confirm an expected delay in rate hikes. Central European assets were rangebound ahead of key global events on Thursday. "The big events will be the British elections, the testimony of (former FBI Director James) Comey (about last year's U.S. elections), and the ECB's meeting," one Budapest-based fixed income trader said. Analysts in a Reuters poll last week unanimously projected that the Polish bank could keep its main interest rate unchanged at a record low 1.5 percent. According to their median forecast, it could start to lift interest rates in the third quarter of next year. A month ago they had projected the second quarter. The delay is seen due to recent data showing a retreat in inflation in the region despite an economic pick-up, and dovish comments from Polish rate setters. The zloty, after drifting to a 2-week low on Tuesday past the psychological line at 4.2 against the euro, was steady at 4.192 at 0828 GMT. The forint eased 0.1 percent, after disappointing Hungarian and Czech industrial output figures. Output fell in April by 3 percent in annual terms in Hungary, even though analysts had predicted a rise, while a 2.5 percent Czech decline was faster than forecasts. Hungary's retail sales growth also slowed in April according to data released on Tuesday. Analysts said the output fall was at least partly caused by fewer working days this year due to the Easter holidays. But the sales of cars - the production of which is a key industry in the region - has picked up again in Europe in May, Takarekbank analyst Gergely Suppan said in a note. "A likely pick-up in industrial output is also indicated by PMI indices...," he said. "Output growth can accelerate to 6 percent this year, due to last year's low base and as new food, tire and car battery production capacities have stepped in." The leu marginally firmed, to 4.5655 against the euro, still near last month's 4-year highs. Romania kept its first-quarter GDP growth estimate unchanged at a robust 5.7 percent. Finance Minister Viorel Stefan said on Tuesday that Romania would scale back public sector wage hikes next year to ensure that it meets budget targets. The leu's moderate reaction showed that markets remain cautious as the government still plans wage hikes and tax cuts that may boost the the budget deficit.

CEE MARKETS SNAPSH AT 1028 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.334 26.332 -0.01% 2.56% 0 5 Hungary 308.28 308.00 -0.09% 0.18% forint 00 00 Polish zloty 4.1920 4.1926 +0.01 5.05%

%

Romanian leu 4.5665 4.5675 +0.02 -0.69%

%

Croatian kuna 7.4075 7.4075 +0.00 1.99%

%

Serbian dinar 122.20 122.29 +0.07 0.94% 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1009.7 1005.9 +0.37 +9.56 3 6 % % Budapest 34922. 34926. -0.01% +9.12 06 99 % Warsaw 2321.3 2303.6 +0.77 +19.1 7 8 % 7% Bucharest 8677.1 8707.4 -0.35% +22.4 8 3 7% Ljubljana 792.56 798.33 -0.72% +10.4

5%

Zagreb 1824.2 1827.9 -0.20% -8.55% 2 1 Belgrade 718.82 720.38 -0.22% +0.20

%

Sofia 677.95 675.82 +0.32 +15.6 % 1%

BONDS

Yield Yield Spread Daily (bid) change vs change Bund in Czech spread

Republic

2-year -0.095 -0.024 +064b -2bps

ps

5-year -0.13 0.044 +032b +3bps

ps

10-year 0.789 0 +053b +0bps

ps Poland

2-year 1.894 0.003 +263b +1bps

ps

5-year 2.625 0.016 +307b +1bps

ps

10-year 3.188 -0.003 +293b +0bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.34 0.41 0.47 0

IBOR=>

Hungary <BU 0.2 0.26 0.33 0.15

BOR=>

Poland <WI 1.753 1.767 1.81 1.73

BOR=>

Note: FRA are for ask quotes prices ********************************************************* ****

(Additional reporting by Luiza Ilie in Bucharest; Editing by Keith Weir)