(Updates with latest figures)

WARSAW, July 23 (Reuters) - The forint eased on Tuesday,

backing further away from a 1-1/2 month high as the Hungarian

central bank lowered rates extended a long-running rate easing

cycle.

Hungary's central bank cut its base rate by 25 basis points

to 6.75% on Tuesday, as expected by a slim majority of

economists who had projected little room for further easing in

the second half of 2024 after steep cuts over the past 15

months.

Hungary's Deputy Governor Barnabas Virag said after the

decision that market expectations of one or two more rate cuts

this year were realistic, and added that upcoming decisions

would be about no change or a small rate reduction.

The forint had slipped 0.4% against the euro to

391 by 1335 GMT, as it retreated from its strongest since early

June which it had hit on Monday.

Analysts had been split on whether Hungary's central bank

might already pause its cutting cycle.

But data showed Hungary's headline inflation easing more

than expected in June to an annual 3.7%, after its two-month

rebound, as price growth subsides from its early 2023 peak of

25.7%, the highest rate in any EU country.

In the Czech Republic, the crown retreated 0.5% to

25.39 per euro, as Czech central bank (CNB) Vice-Governor Jan

Frait said in an interview with the Bloomberg news agency that

he could not rule out another 50-basis-point interest rate cut

when policymakers meet next week.

The CNB has cut its main two-week repo rate by 225 basis

points since December to 4.75%, surprising some at the last

meeting in June by delivering a fourth straight 50-bp reduction

before signalling a likely slowdown in the pace of easing.

Below-forecast inflation there, however, has left open some

bets the bank may still to its current easing pace.

In Poland, the zloty held steady at 4.2815 per

euro.

Data on Monday showed Polish retail sales growing by less

than expected in June, as consumers remained cautious about the

cost of living even with wages rising strongly.

Poland is betting on a wage growth-driven consumer revival

to underpin its economic recovery in 2024.

CEE SNAPSHOT AT

MARKETS 1535 CET

CURRENCI

ES

Latest Previous Daily Change

trade close change in 2024

Czech 25.3900 25.2525 -0.54% -2.71%

crown

Hungary 391.0000 389.3250 -0.43% -2.00%

forint

Polish 4.2815 4.2804 -0.03% +1.47%

zloty

Romanian 4.9727 4.9715 -0.02% +0.03%

leu

Serbian 116.9500 117.0500 +0.09% +0.25%

dinar

Note: calculated from 1800 CET

daily

change

Latest Previous Daily Change

close change in 2024

Prague 1616.80 1615.260 +0.10% +14.34%

0

Budapest 73654.44 73375.88 +0.38% +21.50%

Warsaw 2438.16 2481.28 -1.74% +4.06%

Bucharest 18727.02 18588.28 +0.75% +21.83%

Spread Daily

vs Bund change

in

Czech spread

Republic

2-year 5-year 10-year Poland

2-year 5-year 10-year FORWARD

3x6 6x9 9x12 3M

interban

k

Czech Rep Hungary Poland Note: FRA are for ask prices

quotes

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