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CEE MARKETS-Central bank comments boost Czech crown, hit forint

* Crown hits 4-year high on central banker Nidetzky comments

* Nidetzky says Czech bank may discuss 50 bp hike in Nov

* Hungarian central bank does not cut rates further

* Forint, zloty down on caution ahead of ECB meeting

(Recasts, adding Czech rate setter comments, Hungarian central bank decision) BUDAPEST/WARSAW, Oct 24 (Reuters) - Hawkish comments from the Czech central bank (CNB) boosted the crown to a four-year high, while dovish remarks from the National Bank of Hungary knocked the forint to a two-week low on Tuesday. The CNB may consider a 50 basis points hike, which would triple its main rate, at its meeting on Nov. 2, board member Tomas Nidetzky told Reuters. The crown breached the 25.6 line against the euro. Trading at 25.58 at 1311 GMT, it was firmer by 0.3 percent, while the forint and the zloty weakened by half a percent. Czech markets set aside any immediate concern that billionaire Andrej Babis' ANO party, which won last weekend's election, may run into trouble in its search for coalition partners.. Nidetzky's comments boosted expectations, which have lifted the crown by two percent since July, that the CNB would fight a rise in inflation by increasing rates further, after a hike in early August. The crown has not firmed enough to prevent more hikes, Nidetzky said. "(The firming) is a slow reaction as markets might think 50 basis points is still less likely," a dealer said, adding that the debate was no more about whether a rate hike would happen, but by how much. Most regional currencies have been buoyed by robust economic figures in the past months. But concerns have grown ahead of Thursday's European Central Bank meeting that the world's big central banks may shift towards more hawkish policies. "The ECB comments may not prove positive to emerging market currencies," one Budapest-based dealer said. Hungary's central bank kept rates on hold as expected on Tuesday, but its dovish comments deepened the forint's losses. It said that it was examining unconventional tools to ease policy further, after a cut in its overnight deposit rate last month and liquidity injections to the market through its fx swap tenders. It said the ECB is expected to retain loose monetary conditions. Others, like PKO BP strategist Jaroslaw Kosaty were less optimistic over the international sentiment. "The zloty should remain under the influence of global factors, which are unfavourable," he said. Poland's central bank, which will publish the minutes of its latest meeting on Thursday, has remained relatively dovish despite a rise in inflation. But forward rate agreements (FRAs) have priced in a rate hike to come earlier than most analysts projected in a Reuters poll four weeks ago. The FRAs see 26-basis points of monetary tightening over the next 12 months, the biggest scale priced in since February. For a recent analysis on monetary policy in Central Europe, click on:

CEE MARKETS SNAPSH AT 1511 CET

OT CURRENCIES

Latest Previo Daily Change

us

bid close change in

2017

Czech crown 25.580 25.646 +0.26 5.58% 0 0 % Hungary 309.50 308.02 -0.48% -0.22% forint 00 00 Polish zloty 4.2421 4.2231 -0.45% 3.81% Romanian leu 4.6027 4.5967 -0.13% -1.47% Croatian 7.5100 7.5065 -0.05% 0.60%

kuna

Serbian 119.50 119.27 -0.19% 3.22% 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 1051.7 1048.2 +0.34 +14.1 9 5 % 3% Budapest 39229. 39132. +0.25 +22.5 60 62 % 8% Warsaw 2456.6 2473.4 -0.68% +26.1 8 2 2% Bucharest 7873.2 7900.5 -0.35% +11.1 4 8 2% Ljubljana 803.99 803.93 +0.01 +12.0 % 4% Zagreb 1858.0 1849.4 +0.47 -6.86% 4 4 % Belgrade 727.18 728.25 -0.15% +1.37

%

Sofia 655.87 667.48 -1.74% +11.8

4% BONDS

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

Republic

2-year 0.391 0.164 +109b +14bp ps s 5-year 0.831 0.085 +109b +6bps

ps

10-year 1.667 -0.015 +120b -5bps

ps Poland

2-year 1.7 0.016 +240b -1bps

ps

5-year 2.684 0.005 +294b -2bps

ps

10-year 3.389 0.014 +292b -2bps

ps

FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M

interb ank

Czech Rep <PR 0.88 0.98 1.18 0

IBOR=>

Hungary <BU 0.08 0.1 0.14 0.03

BOR=>

Poland <WI 1.773 1.835 1.9175 1.73

BOR=>

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

(Additional reporting by Radu Marinas in Bucharest, Jason Hovet in Prague and Marcin Goettig in Warsaw, Editing by Jeremy Gaunt and Pritha Sarkar)