By Anita Komuves and Jason Hovet

BUDAPEST, Aug 1 (Reuters) - The Czech crown fell to its

weakest level in more than two years on Thursday as markets were

uncertain whether the Czech National Bank will cut its main rate

by 50 or 25 basis points later in the day.

The crown was down 0.15% and trading at 25.47 per

euro at 0848 GMT after falling to 25.522 earlier, its lowest

since March 2022.

"The market is torn between 25 and 50 bps but leaning closer

to 50 bps," Komercni Banka rates trader Marek Lesko said in a

client note.

The bank has cut interest rates by a total of 225 bps since

December, taking its main rate to 4.75%, but may slow its easing

pace amid the crown's weakness and lingering concerns over

service sector inflation.

"The markets are currently pricing in a roughly 40bp rate

cut and, in conjunction with the hawkish forecast revision, we

therefore expect a hawkish outcome from today's meeting," ING

wrote in a note.

"This should support the short end of the curve to the

upside and with it the CZK, ... In our view, the CZK has decent

potential to rally from these levels."

The Hungarian forint weakened 0.47% to trade at

396.05 versus the common currency, adding to its losses from

earlier in the week when it slipped after worse-than-expected

data on Tuesday showed GDP falling on a quarterly basis for the

first time in more than a year.

Besides economic output data, the 25-bp central bank rate

cut to 6.75% last week was also pressuring the forint, an FX

trader in Budapest said.

The Hungarian government's ongoing conflicts with the

European Union over its relationship with Ukraine and Russia

were also making the currency less attractive to international

investors, he added.

The Polish zloty slid 0.16% to 4.2950 per euro.

"The złoty is calm. The EUR/PLN exchange rate is moving in a

narrow range of 4.25-4.30 and in our opinion, this is the

scenario for the whole week," Bank Millennium wrote.

CEE SNAPSHOT AT

MARKETS 1048

CET

CURRENCI

ES

Latest Previo Daily Change

us

trade close change in 2024

EURC Czech 0

EURH Hungar 00

forint

EURP Polish EURR Romani EURR Serbia 00

dinar

Note: calculat 1800 CET

daily ed from

change

Latest Previo Daily Change

us

close change in 2024

.PX Prague 1597.99 1610.6 -0.79% +13.01%

800

.BUX Budape 73787.13 74051. -0.36% +21.72%

st 15

.WIG Warsaw 2403.96 2421.4 -0.72% +2.60%

20 9

.BET Buchar 18638.56 18629. +0.05% +21.26%

I est 74

Spread Daily

vs Bund change in

Czech spread

Republ

ic

CZ2Y 0

CZ5Y 0

CZ10 0

R r

Poland

PL2Y 0

PL5Y 0

PL10 0

R r

FORWARD RATE

AGREEMENTS

3x6 6x9 9x12 3M

interbank

Czech 3.98 3.61 3.28 4.53

Rep Hungar 6.56 6.21 5.80 6.56

y

Poland 5.81 5.67 5.28 5.86

Note: are for ask prices

FRA

quotes

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(Reporting by Anita Komuves in Budapest, Jason Hovet in Prague

and Pawel Florkiewicz in Warsaw; Editing by Subhranshu Sahu)