(Updates with Hungary central bank decision) By Alan Charlish and Anita Komuves WARSAW/BUDAPEST, Nov 17 (Reuters) - The Hungarian forint was a touch up after the central bank left its key rates unchanged and expanded its bond purchase programme on Tuesday, but the currency then eased back to weaker levels seen in the morning. Most Central European currencies fell on Tuesday, as investors were concerned about Poland and Hungary's veto of the EU budget and rising COVID-19 cases in the United States. The National Bank of Hungary left interest rates unchanged on Tuesday, as expected, as a retreat in inflation and gains by the forint eased pressure on the bank to tighten policy further. The bank, however, substantially expanded its bond purchase programme and increased its cheap loans programme to aid the economic recovery, which it said would be hit by recent restrictions to curb the second wave of the pandemic. The forint rose slightly after the decision and the statement were published, but the currency retreated back to 361.50 per euro by 1431 GMT, down 0.69% on the day. "The market has not really reacted much to the NBH's steps and statement because everyone was expecting rates to stay untouched," a Budapest-based FX trader said, adding that worries about the EU budget's veto weakened the forint recently. Hungary and Poland blocked the adoption of the 2021-2027 budget and recovery fund at a meeting of ambassadors of EU nations on Monday, over a clause making access to money conditional on respect for the rule of law. "In the morning there was some slight zloty selling because of the Polish-Hungarian veto ... but right now the high dollar selling is pushing the zloty higher," a Warsaw-based currency trader said earlier in the day. The dollar has been under pressure amid concerns about the soaring numbers of COVID-19 cases across the United States. In the afternoon the zloty was 0.47% weaker against the euro at 4.4939 per euro. In the Czech Republic, where markets were closed for a holiday, the crown was down 0.29% at 26.4980. CEE SNAPSHO AT MARKETS T 1531 CET CURRENC IES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech <EURCZK= 26.4980 26.4200 -0.29% -4.02% crown > EURHUF= Hungary <EURHUF= 361.500 359.0000 -0.69% -8.40% forint > 0 EURPLN= Polish <EURPLN= 4.4939 4.4730 -0.47% -5.28% zloty > EURRON= Romanian <EURRON= 4.8720 4.8715 -0.01% -1.72% leu > EURHRK= Croatian <EURHRK= 7.5640 7.5675 +0.05 -1.57% kuna > % EURRSD= Serbian <EURRSD= 117.520 117.5500 +0.03 +0.04% dinar > 0 % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 .PX Prague 934.75 934.7500 +0.00 -16.21% % .BUX Budapest 37222.6 37414.60 -0.51% -19.23% 3 .WIG20 Warsaw 1788.00 1799.02 -0.61% -16.84% .BETI Buchares 8919.70 8906.97 +0.14 -10.60% t % .SBITOP Ljubljan <.SBITOP 839.96 837.56 +0.29 -9.28% a > % .CRBEX Zagreb 1697.79 1673.57 +1.45 -15.84% % .BELEX1 Belgrade <.BELEX1 712.00 709.43 +0.36 -11.19% 5 5> % .SOFIX Sofia 425.65 422.84 +0.66 -25.08% % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year <CZ2YT=R -0.0180 -0.0620 +070b -6bps R R> ps CZ5YT=R 5-year <CZ5YT=R 0.6860 -0.0240 +143b -1bps R R> ps CZ10YT= <CZ10YT= 1.1510 -0.0260 +170b -2bps RR 10-year RR> ps Poland PL2YT=R 2-year <PL2YT=R 0.0030 -0.0250 +072b -3bps R R> ps PL5YT=R 5-year <PL5YT=R 0.4270 0.0020 +117b +1bps R R> ps PL10YT= <PL10YT= 1.2040 0.0030 +176b +1bps RR 10-year RR> ps FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.35 0.37 0.43 0.35 Rep <PRIBOR= > Hungary 0.73 0.72 0.70 0.77 Poland 0.20 0.22 0.26 0.22 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Nick Macfie and Steve Orlofsky)
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