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CEE MARKETS-Romania bucks wider market falls as region tracks Germany

falls in oil group PKN Orlen and PKO BP.

* Crown sets 6-week low, zloty 4-week, forint 3-week

* Czech, Romanian, Serbian central banks hold fire

* Brussels cut in euro zone forecasts weighs on mood

* Romanian banks stocks continue to regain some ground

(Recasts with central bank decisions, fall in stocks and bond yield, rise in Romanian bank stocks) BUDAPEST, Feb 7 (Reuters) - Romanian stocks bucked a wider fall among Central European currencies and shares on Thursday as four central banks in the region kept interest rates on hold. Regional markets mostly tracked a fall in German stocks and Bund yields after the European Commission sharply cut its forecasts for economic growth and inflation in the euro zone. If lower inflation leads to a softer European Central Bank (ECB) policy, that could in theory make Central European currencies more attractive relative to the euro. But a flow of weak economic data from Europe also caused a shift towards a less hawkish monetary policy outlook for the European Union's eastern wing where companies are at risk of being hit by an economic slowdown in the West. Polish shares were the biggest fallers, shedding 1.7 percent by 1506 GMT, almost as much as Frankfurt which fell 2.1 percent. A rise in Warsaw's bluechip index stopped just short of an 11-month high on Wednesday, and on Thursday was knocked mainly Bucharest bucked the bearish mood, with its index up 1.6 percent as banks Banca Transilvania and BRD Groupe Societe Generale continued to recover. The stocks have regained some ground after a slump in the past month, helped by hopes for a favourable change in a Romanian tax launched this year on bank assets. The government and the central bank (NBR), which met on Monday, are expected to discuss the tax further on Feb. 18. NBR Governor Mugur Isarescu said on Thursday that an improved economy should keep interbank rates low. The NBR and its Czech, Serbian and Polish counterparts kept interest rates on hold on Wednesday and Thursday. The crown touched its weakest levels against the euro since Dec. 28 at 25.84, before rebounding to 25.79. The forint touched a 3-week low and the zloty 4-week lows beyond the 4.3 line versus the euro. Czech central bank Governor Jiri Rusnok said the bank could wait with further policy tightening as developments abroad may point towards lower inflation. He said the neutral level for the bank's main rate, currently 1.75 percent, was 2.5-3 percent, but it could be hardly reached this year. Government bond yields in the region mostly tracked a fall in Bund yields. Czech 5-year bonds traded around a yield of 1.56 percent, down 10 basis points.



Latest Previous Daily Changebid close change in 2019Czech <EURCZK= 25.7900 25.7810 -0.03% -0.32%crown >Hungary <EURHUF= 319.0500 318.6000 -0.14% +0.64%forint >Polish <EURPLN= 4.3050 4.2966 -0.20% -0.36%zloty >Romanian <EURRON= 4.7430 4.7400 -0.06% -1.88%leu >Croatian <EURHRK= 7.4075 7.4155 +0.11% +0.03%kuna >Serbian <EURRSD= 118.3300 118.4000 +0.06% -0.03%dinar >Note: calculated from 1800 CET

daily change

Latest Previous Daily Changeclose change in 2019Prague 1058.93 1063.020 -0.38% +7.34%


Budapest 40206.89 40597.26 -0.96% +2.73%Warsaw 2372.98 2414.41 -1.72% +4.23%Bucharest 7563.93 7442.73 +1.63% +2.44%Ljubljana <.SBITOP 832.73 831.44 +0.16% +3.54%>Zagreb 1767.69 1766.10 +0.09% +1.08%Belgrade <.BELEX1 707.01 704.24 +0.39% -7.18%


Sofia 570.54 574.25 -0.65% -4.02%


Yield Yield Spread Daily(bid) change vs Bund change


Czech spread


2-year <CZ2YT=R 1.7840 0.0090 +237bps +4bps


5-year <CZ5YT=R 1.6140 -0.0920 +199bps -4bps


10-year <CZ10YT= 1.7180 -0.0090 +161bps +4bps

RR> Poland

2-year <PL2YT=R 1.5470 0.0080 +213bps +3bps


5-year <PL5YT=R 2.1790 -0.0020 +256bps +5bps


10-year <PL10YT= 2.7390 -0.0050 +263bps +5bps




3x6 6x9 9x12 3M

interban k

Czech Rep 2.08 2.11 2.13 2.00



Hungary 0.32 0.51 0.67 0.15Poland 1.73 1.71 1.72 1.72

Note: FRA are for ask prices quotes



(Reporting by Sandor Peto; Editing by Andrew Cawthorne and Alexander Smith)