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 currencies firmed in early trade on Wednesday, recovering after the IMF's cut to its global and regional growth forecasts soured investor sentiment early in the week.

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

Comments by Polish Prime Minister Donald Tusk saying that an exchange rate of 4.5 zlotys to the euro - much weaker than current rates of around 4.09 - would be good for the economy also had little immediate impact.

At 0930 GMT, the zloty was flat while the Hungarian forint and the Czech crown were 0.2 percent stronger against the euro each.

"Things are relatively quiet in the region today, volatility is at a low level," said Karol Zaluski, chief currency dealer at ING Bank in Warsaw. Other dealers also said Wednesday's session was likely to be calmer after the hit to valuations from the International Monetary Fund.

The IMF said on Tuesday that the global economic slowdown was worsening and predicted growth in central and eastern Europe would more than halve to 2.0 percent this year and rise to just 2.6 percent in 2013.

Dovish remarks by Polish MPC members offered a clearer indication of where rates are going after the central bank surprised markets by leaving borrowing costs unchanged last week, aiding bonds.

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

MPC member Andrzej Bratkowski, who has been calling for rate cuts for several months now, told Reuters that he would now back even a big one-off reduction of 75 basis points from a current 4.75 percent to help the ailing economy.

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

RATES Romania's leu

led gains among the region's currencies, rising 0.2 percent after inflation accelerated past the central bank's target, effectively reducing the scope for interest rate cuts needed to boost its languishing economy.

The Serbian dinar could continue its recent rise after the central 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 there was a dinar rally against the euro but that it would be a rather "minor one."

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

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

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

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

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

Currency Latest Previous Local Local close currency currency change change today in 2012 Czech crown 24.96 24.995 +0.14% +2.34% Polish zloty 4.081 4.079 -0.05% +9.4% Hungarian forint 282.7 283.36 +0.23% +11.28% Croatian kuna 7.49 7.485 -0.07% +0.34% Romanian leu 4.566 4.574 +0.18% -5.37% Serbian dinar 114.3 114.57 +0.24% -6.43% Yield Spreads Czech treasury bonds 2-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 bonds 2-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 domestic close at 1600 GMT.

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

((karolina.slowikowska@thomsonreuters.com)(+ 48 22 653 97 25)(Reuters Messaging: karolina.slowikowska.thomsonreuters.com@reuters.net))

Keywords: MARKETS EASTEUROPE/