(Adds Hungary cen bank decision, forint reaction, trader quote)

By Anita Komuves

BUDAPEST, Oct 22 (Reuters) - Hungary's forint firmed

against the euro on Thursday after the central bank left its

base rate unchanged, as widely expected, and said it could keep

the rate at the current level for a prolonged period if needed.

The forint was up 0.32% on the day and trading

at 400.55 per euro at 1347 GMT. The currency briefly firmed past

the psychologically important level of 400 after the rate

decision was announced but soon gave up those gains.

"The market got what it had expected, that's why we did

not see a big move in the forint's rate," an FX trader in

Budapest said. "But the central bank's messages could put a cap

on weakening for a while."

The National Bank of Hungary

kept

its base rate at 6.50%, halting cuts for now

despite inflation falling to its 3% target for the first time

since 2021.

The bank could keep its base rate at the current 6.5% level

for a prolonged period if needed, Deputy Governor Csaba Kandracs

said.

The forint, central Europe's worst performing currency in

2024, has weakened sharply in recent weeks, raising speculation

of a rebound in price growth and shifting expectations to a

pause in rate cuts.

The forint fell beyond the 400-per-euro level this month for

the first time since March 2023.

In Poland, the zloty was little moved, edging down

0.02% on the day to 4.32 per euro. The Czech crown

firmed 0.11% and was trading at 25.242, recovering some losses

from the previous session.

Central European currencies have recently come under

pressure from uncertainties over the U.S. presidential election,

with chances of a Donald Trump victory helping the U.S. dollar

and weighing on the region's assets, analysts say.

On Tuesday, the dollar clung to a 2-1/2 month high on

expectations the U.S. Federal Reserve will take a measured

approach to rate cuts.

"The crown is staying in a lightly defensive position," CSOB

bank said. "In the coming sessions, we do not expect any

significant improvement (as) nervousness before U.S. elections

will be evident in risk assets sensitive to a rise in U.S.

market rates."

CEE SNAPSHOT AT

MARKET 1547

S CET

CURRENCIE

S

Latest Previo Daily Change

us

trade close change in 2024

EURCZK Czech 0

EURHUF Hungary 00

EURPLN Polish EURRON Romania EURRSD Serbian 00

Note: calculated from 1800 CET

daily

change

Latest Previo Daily Change

us

close change in 2024

.PX Prague 1630.55 1627.5 +0.19% +15.31

200 %

.BUX Budapes 74046.72 73990. +0.08% +22.15

t 26 %

.WIG20 Warsaw 5

.BETI Buchare 39 %

Spread Daily

vs Bund change

in

Czech spread

Republi

c

CZ2YT= 0

CZ5YT= CZ10YT Poland

PL2YT= 0

PL5YT= PL10YT FORWARD RATE

AGREEMENTS

3x6 6x9 9x12 3M

interba

nk

Czech Hungary Poland Note: are for ask

FRA prices

quotes

*********************************************

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(Additional reporting by Jason Hovet in Prague and Alan

Charlish in Warsaw; Editing by Mark Potter and Ed Osmond)