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UPDATE 1-CEE MARKETS-Hungary cbank leaves rates untouched, forint weaker on political worries

 (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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