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CEE MARKETS-Zloty, crown jump as GDP data confirm robust CEE growth

* GDP growth is robust and mostly above forecasts

* Zloty, crown lead main currencies higher

* Leu steady despite Romanian GDP growth surge to 5.9 pct

(Adds Polish figures, details, analyst comments) BUDAPEST, Aug 16 (Reuters) - The zloty led Central Europe's main currencies higher on Wednesday after figures for the second quarter showed the region's economic growth remained strong. Poland's annual economic growth slowed from 4 percent in the first quarter, but at 3.9 percent was a tick above analysts' forecasts. The zloty gained half a percent, reaching 4.2732 against the euro at 0928 GMT. Central European economies are powering ahead, helped by demand for their exports and rising wages. Pay has risen fastest in Romania, and according to Wednesday's data, its annual growth accelerated to 5.9 percent from 5.7 percent in the first quarter . However, the wage increases are fueled by government policy, which has led to fears of a rise in the budget deficit and inflation. Romania also has a trade deficit, while its main regional peers have surpluses or smaller deficits. The leu, which is usually slow to react to economic data, was steady at 4.573 versus the euro. "It (the figures) should be slightly positive for the Romanian leu but negative for government bonds as the output gap looks set to widen further, increasing the chances for inflation to rise even faster than expected," said Ciprian Dascalu, chief economist at ING in Romania. A jump in Czech output may also heighten expectations the central bank will continue to tighten policy to fight inflation. Early this month, it became the first in the European Union to raise interest rates since 2012. "The positive surprise can cause a capital inflow ... an increase in the volume of foreign capital in the Czech economy would pose a risk that (the central bank's) communication will become more hawkish in the coming months," Erste analyst Jiri Polansky said in a note. The crown touched its strongest levels since Aug. 4. It firmed 0.4 percent to 26.05. Hungary's forint gained 0.2 percent to 303.70, approaching 27-month highs beyond 302.95, even tough Hungary's annual economic growth slowed to 3.2 percent from 4.2 percent in the first quarter, below forecasts by analysts of 3.7 percent. "(But) the outlook has not been as good as now for decades," said Gergely Suppan, analyst of Takarekbank, who has been among the most accurate forecasters of Hungarian economic growth in the past years.

CEE MARKETS SNAPSH AT 1128 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 26.050 26.153 +0.40 3.67% 0 5 % Hungary 303.70 304.19 +0.16 1.69% forint 00 50 % Polish zloty 4.2732 4.2955 +0.52 3.06%

%

Romanian leu 4.5730 4.5740 +0.02 -0.83%

%

Croatian 7.3940 7.3935 -0.01% 2.18%

kuna

Serbian 119.34 119.36 +0.02 3.36% dinar 00 00 % Note: daily calculated previo close 1800 change from us at CET

STOCKS

Latest Previo Daily Change

us

close change in

2017

Prague 1033.5 1032.5 +0.10 +12.1 4 0 % 5% Budapest 36825. 36775. +0.14 +15.0 90 94 % 7% Warsaw 2393.4 2376.6 +0.71 +22.8 9 6 % 7% Bucharest 8268.3 8334.2 -0.79% +16.7 2 8 0% Ljubljana 804.21 805.67 -0.18% +12.0

7%

Zagreb 1893.4 1897.5 -0.22% -5.08% 3 1 Belgrade 717.68 715.89 +0.25 +0.04 % % Sofia 732.84 729.28 +0.49 +24.9 % 7%

BONDS

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

Republic

2-year 0.026 0.089 +072b +8bps

ps

5-year 0.065 0.006 +030b -2bps

ps

10-year 0.877 -0.005 +042b -4bps

ps Poland

2-year 1.862 0.012 +256b +0bps

ps

5-year 2.747 0.01 +298b -1bps

ps

10-year 3.414 0.017 +296b -2bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.59 0.72 0.82 0

IBOR=>

Hungary <BU 0.24 0.3 0.36 0.15

BOR=>

Poland <WI 1.766 1.799 1.848 1.73

BOR=>

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

(Additional reproting by Radu Marinas in Bucharest/Robert Muller in Prague; Editing by Larry King)