* Zloty retreats and other CEE currencies are mixed
* Investors hold breath before British vote and ECB meeting
* Romania to scale back wage hikes; leu eases
(Recasts with Polish central bank decision and comments)
By Sandor Peto
BUDAPEST, June 7 (Reuters) - The zloty weakened against the euro on Wednesday as the Polish central bank kept interest rates on hold and its governor reiterated that he did not expect them to rise until the end of next year.
Central European assets were generally rangebound ahead of key global events on Thursday.
"The big events will be the British elections, the testimony of (former FBI Director James) Comey (about last year's U.S. elections), and the ECB's meeting," one Budapest-based fixed income trader said.
The Polish bank kept its main interest rate unchanged at a record low 1.5 percent, as expected.
Analysts in a Reuters poll put the likely date of a rate hike in the third quarter of 2018, after projecting the second quarter a month ago. But the bank's governor Adam Glapinski reiterated that he personally expected that rates would not be raised until the end of 2018. He also said the bank was not concerned about the zloty's recent gains. The zloty, after an initial rebound from two-week lows set on Tuesday, eased 0.1 percent against the euro, hovering at the 4.2 psychological line.
It is still near the nine-month high of 4.1619 it hit last month. Glapinski said consumer confidence was the highest in Poland for 30 years, while inflation had stabilised and might even fall slightly.
Elsewhere in the region, the forint eased 0.1 percent, after disappointing Hungarian and Czech industrial output figures.
Output fell in April by 3 percent in annual terms in Hungary, although analysts had predicted a rise. A 2.5 percent Czech decline was more than forecast.
Analysts said the output fall was at least partly caused by fewer working days due to the Easter holidays.
The leu eased 0.1 percent to 4.5735, trading near last month's four-year highs.
Romania kept its first-quarter GDP growth estimate unchanged at a robust 5.7 percent. Finance Minister Viorel Stefan said on Tuesday Romania would scale back public sector wage hikes next year to ensure it meets budget targets. Markets remain cautious as the government still plans wage hikes and tax cuts that may boost the the budget deficit.
CEE MARKETSSNAPSH AT1705 CET
OT
CURRENCIES
LatestPrevioDaily Change
us
bid close changein
2017Czech crown 26.31026.332 +0.09 2.65%
0 5 %Hungary 308.18308.00-0.06% 0.21%forint0000Polish zloty 4.19574.1926-0.08% 4.96%Romanian leu 4.57354.5675-0.13%-0.84%Croatian kuna 7.40457.4075 +0.04 2.03%
%Serbian dinar 122.31122.29-0.02% 0.85%
0000Note: dailycalculated previoclose 1800change from usatCET
STOCKS
LatestPrevioDaily Change
us
close changein
2017Prague 1005.61005.9-0.03% +9.12
2 6 %Budapest 35021.34926. +0.27 +9.43
7599 % %Warsaw 2308.62303.6 +0.22 +18.5
4 8 %2%Bucharest 8686.68707.4-0.24% +22.6
2 30%Ljubljana 793.09798.33-0.66% +10.5
2%Zagreb 1821.01827.9-0.38%-8.71%
0 1Belgrade 722.55720.38 +0.30 +0.72
% %Sofia 681.10675.82 +0.78 +16.1
%4%
BONDS
Yield Yield SpreadDaily
(bid) changevschange
BundinCzech spreadRepublic2-year -0.071 0 +066b +0bps
ps5-year -0.13 0.044 +033b +4bps
ps10-year 0.789 0 +054b +1bps
psPoland2-year 1.905 0.003 +264b +1bps
ps5-year 2.625 0.007 +308b +1bps
ps10-year 3.19-0.018 +294b -1bps
ps
FORWARDRATEAGREEMENT
3x6 6x9 9x123M
interb
ankCzech Rep Hungary Poland Note: FRAare for askquotes prices **************************************************************(Additional reporting by Luiza Ilie in Bucharest and Bartosz Chmielewski in Warsaw; Editing by Andrew Roche)
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