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CORRECTED-CEE MARKETS-CEE mixed, crown firms as market awaits easing halt for now

 (Corrects zloty, leu quotations in paragraph 8th)
    By Radu-Sorin Marinas
    BUCHAREST, Sept 23 (Reuters) - Central European currencies
were mixed early on Wednesday, with the Czech crown slightly
firmer ahead of a central bank meeting in which the base rate is
expected to be kept flat as the market eyes a temporary halt of
monetary easing.
    A Reuters poll on Tuesday showed the Czech National Bank
(CNB) was likely to keep its two-week repo rate at
0.25% after having cut it by 200 basis points so far this year,
without reverting to easing again. Tighter policy, however, is
not expected before the end of 2021.
    Analysts say interest rates have probably bottomed amid a
resurgence in COVID-19 infections, raising fears the economy
could again face restrictions.
    The Czech Republic recorded 2,394 new infections in its
second-highest daily rise since the pandemic began, Health
Ministry data showed on Wednesday.
    By 0820 GMT, the crown gained 0.2% to trade at
trading at 26.970.
    "We do not expect an immediate reaction on the part of the
CNB today, but we assume that the central bank will keep a close
eye on the government's future measures and, if necessary, will
take action ... as it had already done in the spring," said
Commerzbank analysts.
    The crown eased by 3% since the start of the month, "thus
coming in right at the bottom of the list of the Eastern
European currencies. We expect the crown to remain under
pressure for now," they added.
    The Polish zloty and the Romanian leu
were little changed at 4.4883 and 4.8640 respectively.
    The Hungarian forint eased marginally 0.02% and
was trading at 363.75, extending losses from the start of the
week when it plunged to a five-month low in global risk-off
mood.
    The currency temporarily firmed before falling back to
Tuesday's levels after the central bank left rates unchanged and
deputy governor Barnabas Virag said the bank is ready to use its
tools if justified by the inflation outlook.
    "If the exchange rate of the forint weakens further, then,
based on the comments of the central bank we expect a temporary
rate hike at the one-week deposit tender, trying to stabilize
the market," said David Nemeth, senior analyst at K&H Bank.

           CEE         SNAPSHOT    AT  1058                    
           MARKETS                CET                  
                       CURRENCIE                               
                       S                               
                       Latest     Previous   Daily     Change
                       bid        close      change    in 2020
 Czech                   26.9850    27.0230    +0.14%    -5.76%
 crown                                                 
 Hungary                363.8000   363.6900    -0.03%    -8.98%
 forint                                                
 Polish                   4.4877     4.4907    +0.07%    -5.15%
 zloty                                                 
 Romanian                 4.8640     4.8615    -0.05%    -1.56%
 leu                                                   
 Croatian                 7.5470     7.5465    -0.01%    -1.35%
 kuna                                                  
 Serbian                117.5000   117.6000    +0.09%    +0.06%
 dinar                                                 
 Note:     calculated from                   1800 CET          
 daily                                                 
 change Latest     Previous   Daily     Change
                                  close      change    in 2020
 Prague                   869.12   868.0500    +0.12%   -22.10%
 Budapest               32674.29   32296.74    +1.17%   -29.10%
 Warsaw                  1698.06    1693.09    +0.29%   -21.02%
 Buchares                9016.05    9019.56    -0.04%    -9.63%
 t                                                     
 Ljubljan                 834.84     833.14    +0.20%    -9.83%
 a                                                     
 Zagreb                  1631.09    1619.00    +0.75%   -19.15%
 Belgrade                 686.26     692.62    -0.92%   -14.40%
 Sofia                    425.24     423.59    +0.39%   -25.15%
                                                               
                       Yield      Yield      Spread    Daily
                       (bid)      change     vs Bund   change
                                                       in
 Czech                                                 spread
 Republic                                              
   2-year                 0.0950    -0.0300   +081bps     -2bps
   5-year                 0.5380    -0.0260   +126bps     -2bps
           <CZ10YT=RR     0.8730    -0.0140   +139bps     +1bps
 10-year   >                                           
 Poland                                                        
   2-year                 0.0800    -0.0050   +079bps     +0bps
   5-year                 0.6360    -0.0300   +136bps     -2bps
           <PL10YT=RR     1.3210    -0.0150   +184bps     +1bps
 10-year   >                                           
           FORWARD                                             
                       3x6        6x9        9x12      3M
                                                       interban
                                                       k
 Czech             <P       0.32       0.33      0.35      0.34
 Rep       RIBOR=>                                     
 Hungary           <B       0.81       0.90      0.97      0.63
           UBOR=>                                      
 Poland            <W       0.20       0.18      0.18      0.22
           IBOR=>                                      
 Note:     are for ask prices                                  
 FRA                                                   
 quotes                                                
 ****************************************************          
 **********                                            
 
    
    

 (Additional reporting by Anita Komuves in Budapest and Jason
Hovet in Prague; Editing by Ramakrishnan M.)
  
 
 
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