By Krisztina Than

BUDAPEST, Oct 30 (Reuters) - The forint eased more than

half a percent versus the euro on Wednesday, underperforming

central European currencies, after much weaker-than-expected GDP

data showed the Hungarian economy dipped into technical

recession in the third quarter.

Hungary's economy is still recovering from an inflation

shock which drove price growth to more than 25% in the first

quarter of 2023, eating into Hungarians' spending power. Close

trade links with Germany are also hitting the economies of

Hungary, the Czech Republic and Slovakia, where German carmakers

have big car plants.

Despite the weak growth outlook, Hungary's central bank kept

interest rates on hold earlier this month as the weakening

forint cut its room for manoeuvre in policy. Its base rate is

still the highest in the European Union at 6.5%.

"Today's growth print is incrementally dovish for

Hungarian rate prospects, although we expect the NBH to remain

on hold in the very near term as the Forint has continued to

weaken against the Euro," Goldman Sachs analysts said in a note.

The Hungarian GDP data showed a contraction of 0.8%

year-on-year in the third quarter, defying expectations for

growth. GDP contracted by 0.7% from the previous quarter.

The forint, which has been the region's laggard

with a 6% fall so far this year, weakened 0.55% to hit a new

22-month low of 407.50 per euro by 0952 GMT.

"The next potential resistance could be around 408.50,"

brokerage Equilor said in a note.

Other currencies in the region were mostly steady with

investors on the sidelines as uncertainty about the U.S.

presidential election and a firmer dollar remained in focus.

The dollar has been supported by expectations that former

president Donald Trump could win in Nov. 5 elections. His tax

and tariff policies are seen as inflationary and more likely to

keep U.S. rates high.

The zloty was broadly flat at 4.336 per euro. The

Czech crown traded a shade weaker at 25.372.

CEE SNAPSHOT AT

MARKETS 1152

CET

CURRENCI

ES

Latest Previo Daily Change

us

trade close change in 2024

EURCZK= Czech 0

EURHUF= Hungary 00

EURPLN= Polish EURRON= Romania EURRSD= Serbian 00

Note: calculat 1800

daily ed from CET

change

Latest Previo Daily Change

us

close change in 2024

.PX Prague 1637.84 1643.3 -0.33% +15.83%

400

.BUX Budapes 74055.15 74225. -0.23% +22.16%

t 68

.WIG20 Warsaw 2266.06 2284.7 -0.82% -3.28%

6

.BETI Buchare 17508.18 17504. +0.02% +13.90%

st 24

Spread Daily

vs Bund change in

Czech spread

Republi

c

CZ2YT=R 0 s

CZ5YT=R 0 s

CZ10YT= 0 s

Poland

PL2YT=R 0 s

PL5YT=R 0 s

PL10YT= 0 s

FORWARD

RATE

AGREEMEN

TS

3x6 6x9 9x12 3M

interbank

Czech 3.82 3.55 3.40 4.08

Rep Hungary 6.46 6.27 6.14 6.45

Poland 5.71 5.28 4.88 5.85

Note: are for

FRA ask

quotes prices

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(Editing by Christina Fincher and Sharon Singleton)