CORRECTED-CEE MARKETS-Crown outperforms as jump in inflation reinforces rate hike expectations

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 (Corrects month to October in paragraph 4)
    By Anita Komuves
    BUDAPEST, Nov 10 (Businesshala) - The Czech crown surged to a
near 21-month high on Wednesday and outperformed central
European peers after higher-than-expected inflation data further
fuelled expectations of another hefty rate hike.
    The currency has been firming since last week when the Czech
central bank delivered an unexpected rate hike of 125 basis
points - its biggest in 24 years - and lifted its key repo rate
to 2.75%. 
    "The CNB is forced to continue raising rates because of the
further acceleration of inflation," Raiffeisen said, adding it
saw chances of a 75 bps hike at the bank's December meeting.
    Data published on Wednesday showed Czech inflation rose to
5.8% in October, a 13-year high.
    The crown gained 0.25% on the day and was trading
at 25.198 to the euro at 0952 GMT. 
    While the crown has been buoyed by interest rate hikes, some
analysts saw limits to any further short-term boost.
    "The expected increase in the key rate to 3.50% has been
priced in. Therefore, today's inflation figures should not have
a significant impact on the crown's development in the near
term," Erste wrote.
    The Czech inflation reading follows a surge in consumer
prices seen around central Europe.
    Data on Wednesday also showed Romanian inflation rose to a
13-year high of 7.94%, even as the country's central bank hiked
rates on Tuesday and warned of new forecasts showing a
"worsening" in the inflation outlook.
                        
    The leu was little moved on Wednesday, edging down
0.1% to 4.9495 versus the common currency.
    Elsewhere, the Hungarian forint weakened 0.27% to
361.50 per euro, a day after data showed October inflation
jumped to 6.5%, above expectations. 
    The forint is expected to stay in its recent tight range
around 360 until next Tuesday's rate setting meeting of the
National Bank of Hungary (NBH), brokerage Equilor wrote. 
    "An at least 30 basis-point hike would be needed to
stabilize the exchange rate of the forint," they said.
    The Polish zloty eased and was down 0.18% at
4.6018 to the euro, pressured by Warsaw's debates with the
European Union over rule-of-law issues.
    
    
                    CEE       SNAPSHO   AT                      
                    MARKETS   T        1052 CET           
                              CURRENC                           
                              IES                         
                              Latest   Previous  Daily    Change
                              bid      close     change   in
                                                          2021
 EURCZK=  Czech                                               %
 EURHUF=  Hungary                  0                          %
 EURPLN=  Polish                                         
 EURRON=  Romanian                                       
 EURHRK=  Croatian                                            %
 EURRSD=  Serbian                  0                          %
          Note:     calculated from              1800           
          daily                                  CET      
          change Latest   Previous  Daily    Change
                                       close     change   in
                                                          2021
 .PX      Prague              1376.37  1388.380   -0.87%   +34.0
                                              0               0%
 .BUX     Budapest            54135.4  54099.27   +0.07%   +28.5
                                    3                         6%
 .WIG20   Warsaw              2397.97   2395.05   +0.12%   +20.8
                                                              7%
 .BETI    Buchares            12872.8  12847.75   +0.20%   +31.2
          t                         1                         8%
 .SBITOP  Ljubljan  <.SBITOP  1203.54   1207.09   -0.29%   +33.6
          a         >                                         0%
 .CRBEX   Zagreb              2010.22   2009.85   +0.02%   +15.5
                                                              8%
 .BELEX1  Belgrade  <.BELEX1   805.25    804.82   +0.05%   +7.57
 5                  5>                                         %
 .SOFIX   Sofia                604.34    598.77   +0.93%   +35.0
                                                              4%
                                                                
                              Yield    Yield     Spread   Daily
                              (bid)    change    vs Bund  change
                                                          in
          Czech                                           spread
          Republic                                        
 CZ2YT=R    2-year                                   s  
 CZ5YT=R    5-year                                   s  
 CZ10YT=                                            s  
          Poland                                                
 PL2YT=R    2-year                                   s  
 PL5YT=R    5-year                                   s  
 PL10YT=                                            s  
                    FORWARD                                     
                              3x6      6x9       9x12     3M
                                                          interb
                                                          ank
          Czech                  4.05      3.95     3.84    3.08
          Rep                                            
          Hungary                3.07      3.49     3.79    2.09
                                                          
          Poland                 2.78      3.07     3.17    1.57
                                                          
          Note:     are for ask                                 
          FRA       prices                                
          quotes                                          
          **********************************************        
          ****************                                
 


 (Additional reporting by Jason Hovet in Prague and Pawel
Florkiewicz in Warsaw; Editing by Krishna Chandra Eluri)
  
 
 
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