POLL-Czech CZK seen at 26.5/euro in 3 mths, 26.13 in 12 mths

...expectations that the currency's five-month-old rally has petered out.

The prospect of further interest rate hikes to keep resurgent inflation at bay and prevent the economy from overheating propelled the crown to a record high of 25.933 per euro on Monday.

The median forecast in the survey among 16 analyst groups was for the crown to trade at 26.30 versus the euro in one month and at 26.50 in three months.

The poll saw the crown sliding to 26.70 within six months before regaining ground to be at 26.13 within a year from now.

The crown has firmed beyond the one-month forecast of 26.90 and the three-month view of 26.80 in the previous poll among 15 analyst groups in mid-November [ID:nL15460726].

The crown traded around 26.00 per euro on Wednesday, up 10.5 percent from this year's lows in early July.

The Czech central bank (CNB) has raised interest rates to a 5-1/2-year high of 3.50 percent as inflation surged on the back of rising food and energy prices.

Expectations of further Czech rate hikes in 2008 and stable euro zone rates point to a likely disapearance of the short-term 50 basis point yield discount between the crown and the euro over the course of next year, helping to underpin the crown.

** For table with regular monthly poll results click on [ID:nL12705911]

(Reporting by Mirka Krufova; Writing by Marek Petrus)

Keywords: CZECH FOREX/

[PRAGUE/Reuters/Finance.cz]