PRAGUE, July 29 (Reuters) - Central Europe's currencies

mostly eased on Monday in light trading, with focus turned to a

Federal Reserve meeting this week along with a Czech central

bank meeting likely to confirm slower interest rate cuts.

The Fed is widely expected to set the stage for a September

rate cut. The start of U.S. interest rate reductions would

generally benefit emerging market currencies, like in central

Europe, due to dollar outflows.

"In our opinion, the Fed meeting itself does not have to

cause much volatility, because the data published so far, as

well as the communication of Fed members, suggest no change in

interest rates at the next meeting and maintaining expectations

for a cut in September," Bank Millennium said in a note.

Currencies gave up some gains seen at the end of last week

on Monday. The Polish zloty led losses, falling 0.3%

to 4.2875 to the euro but was still near multi-year highs around

the 4.25 level.

In the Czech Republic, the crown hovered around

25.37 per euro after touching a five-month low of 25.453 last

week.

Markets are watching whether the Czech National Bank will

shift its easing pace down to standard 25-basis-point steps when

it meets on Thursday, following four straight 50-bp cuts.

The bank had signalled a slowdown after its June meeting but

below-forecast inflation and a vice-governor's comments on not

ruling out another 50-bp move have raised some uncertainty.

Analysts in a Reuters poll on Friday, though, all forecast a

25-bp cut.

"We see a 25-basis point cut to 4.50% as the more likely

scenario, due to the persistent cautiousness of the majority of

the board," Erste Group Bank said.

Central banks in the European Union's emerging east have all

eased monetary policy since last year, in varying degrees. Rates

are still falling in Hungary, while they are on pause in Poland

and Romania has only started its easing cycle.

Hungary's forint fell 0.1% to 391.60 the euro to

start the week, and Romania's leu also drifted.

Preliminary Hungarian and Czech gross domestic product data

from the second quarter is due on Tuesday, which will give more

clues on how a consumer-driven rebound is progressing. Lower

inflation has boosted households' spending, after the surge in

consumer prices of recent years.

CEE SNAPSHOT AT

MARKETS 1233

CET

CURRENCIES

Latest Previo Daily Change

us

trade close change in 2024

Czech 0

Hungary 00

Polish Romania Serbian 00

Note: calculated from 1800 CET

daily

change

Latest Previo Daily Change

us

close change in 2024

Prague 1603.42 1597.8 +0.35% +13.39

400 %

Budapes 73543.83 73174. +0.51% +21.32

t 10 %

Warsaw 5

Buchare 18538.25 18562. -0.13% +20.60

st 57 %

Spread Daily

vs Bund change

in

Czech spread

Republi

c

0

0

0

Poland

0

0

FORWARD RATE

AGREEMENTS

3x6 6x9 9x12 3M

interba

nk

Czech Hungary Poland Note: are for ask prices

FRA

quotes

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