BUDAPEST, May 26 (Reuters) - Hungary's forint eased on

Tuesday ahead of a meeting of the National Bank of Hungary later

in the day where analysts expect the base rate to be kept on

hold amid a rise in energy prices and inflation risks.

The forint eased 0.3% to trade at 356.90 versus

the euro, giving up some gains from the previous session.

A Reuters poll of analysts sees the base rate remaining

unchanged at 6.25% as the war in the Middle East outweighs the

impact of recent gains in the forint.

The central bank delivered its first 25-basis-point cut

since late 2024 in February, but has remained cautious since

then.

The central bank will announce its decision at 1200 GMT, and

publish a statement and hold a press conference at 1300 GMT.

"After the cut in the interest rate on the FX swap facility,

I see some chance of a rate cut and if that happens, the forint

would ease a bit, but the rate would soon return to current

levels," an FX trader in Budapest said.

"The market is still bullish when it comes to Hungary and

the forint, the effect of the election still holds," the trader

said.

Prime Minister Peter Magyar said that he will travel to

Brussels on Thursday where he expects a deal on the release of

suspended European Union funds. A possible deal announced on

Thursday could further support the forint, the trader said.

Elsewhere, currencies took cues from Iran war developments.

The Polish zloty edged down 0.1% to trade at 4.234 to

the euro.

"After yesterday's strengthening of the złoty, driven by

improved sentiment and hopes for an upcoming US-Iran agreement,

today's session brings a decline in optimism," ING wrote in a

note.

Expectations for an imminent end to the Middle East conflict

waned on Tuesday after the U.S. launched fresh attacks on Iran,

driving concerns over the global economic outlook and raising

oil prices.

The Czech crown was little changed, while the

Romanian leu added 0.2% to trade at 5.2326 to the

euro.

CEE MARKETS SNAPSHOT AT 1019

CET

CURRENCIES Lates Previo Daily Change

t us chang in

trade close e 2025

Czech 00 0 %

Hungar 000 00 % %

forint

Polish 0 %

Romani 5 7%

Serbia 000 00 9% %

dinar

Note: daily change calculated from 1800

CET

STOCKS Lates Previo Daily Change

t us chang in

close e 2025

Budape 13589 135935 -0.03 +22.4

st 9.33 .10 % 0%

Warsaw 57 7 3% 9%

Buchar .51 69 3% 8%

BONDS Yield Yield Sprea Daily

(bid) change d vs change

Bund in

spread

Czech 0 0 bps

5-year

Czech 0 0 bps

10-yea

r

Poland 0 0 bps

Poland 0 0 bps

r

FORWARD RATE 3x6 6x9 9x12 3M

AGREEMENTS interb

ank

Czech Poland Note: FRA quotes are for ask

prices