CEE MARKETS 1-FX weaker with stocks, helped by cbanker comments

                                
 * FX down with stocks, shake off euro zone worry 
                                
 * Hungarian, Polish cbanker comments support 
                                
 * Higher Romania inflation reading dents chance of rate cut
                                
 
                                
 By Jason Hovet
                                
 PRAGUE, March 10 (Reuters) - Central European currencies
drifted lower on Thursday with weaker stock markets but comments
from Hungarian and Polish central bankers propped up the forint
and the zloty with hopes of relatively tighter monetary policy.
                                
 In Romania, where markets have been counting on a loosening
of policy this year, a pickup in inflation that narrowed the
scope for rate cuts also supported the leu.
                                
 Markets were broadly weaker as worry over the euro zone's
debt crisis built, but the Polish zloty <EURPLN=> and Hungarian
forint <EURHUF=> recovered from early lows and bid down 0.2
percent and 0.1 percent respectively on the day.
                                
 The forint gained back ground after central bank Governor
Andras Simor said an inflation spiral could not be allowed to
restart, and recent rate increases have sent a message that the
bank will not create room for high inflation. [ID:nBUD005752]
                                
 In Poland, central banker Andrzej Bratkowski said the
monetary policy council could raise rates by another 50 basis
points in the second quarter. [ID:nWSF010080]
                                
 Hungary was the first in central Europe to hike interest
rates since the financial crisis started, and has carried out 75
basis points in increases since November. But it paused last
month, and analysts forecast steady rates ahead.
                                
 Budapest dealers said the forint still had room for gains.
"Just below EUR/HUF (at) 274 per euro, the forint hit
technical levels too, so we suspect there's more room for the
pair to creep lower," a Budapest-based dealer said.
                                
 
                                
 ROMANIAN CPI UP
                                
 In Romania, annual inflation quickened to 7.6 percent in
February from January's 7 percent, topping market expectations
and the central bank's target. [ID:nLDE7280JU]
                                
 Markets have expected easier monetary policy as the country
struggles to gain traction in an economic recovery.
                                
 But many analysts say the bank may confound those
expectations as it battles imported inflation and, alone in
central Europe, a currency that has not benefited from an
emerging market boom. [ID:nLDE71O05N]
"The question now is how and if you can avoid a rate hike,"
said Ionut Dumitru, chief economist at Raiffeisen in Bucharest.
                                
 "Our scenario right now envisions flat rates and a slightly
firmer leu currency."
                                
 Unlike Hungary or Poland, the Czech central bank has yet to
tighten rates, and weak inflation data on Wednesday dented
expectations of a rush to raise borrowing costs. [ID:nLDE72814W]
                                
 The leu <EURRON=> slipped 0.1 percent to 4.195 to the euro
by 0945 GMT. The crown <EURCZK=> was down less than 0.1 percent
after leading losses in the previous session.
                                
 Stock markets fell up to 1 percent, led by Budapest <.BUX>.
                                
 Dealers said a Moody's rating downgrade on Spain was hanging
on the market, and hit the region's reference currency the euro.
But the impact was limited in emerging Europe, where debt levels
are lower than in many euro zone periphery states.
                                
 "We will continue to see range trading on CEE currencies and
we should stay inside technical ranges," CSOB dealer David
Sykora. "The market really needs some momentum, and is still
waiting for it."
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>   24.34    24.326  -0.06%   +2.71%
Polish zloty     <EURPLN=>    3.991    3.982  -0.23%   -0.83%
Hungarian forint <EURHUF=>  272.8    272.5    -0.11%   +1.9%
Croatian kuna    <EURHRK=>    7.391    7.39   -0.01%   -0.15%
Romanian leu     <EURRON=>    4.195    4.189  -0.14%   +0.91%
Serbian dinar    <EURRSD=>  102.9    103.31   +0.4%    +2.94%
All data taken from Reuters at 1047 CET.
Currency percent change calculated from the daily domestic 
close at 1700 GMT.
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 (Reporting by Reuters bureaus, writing by Jason Hovet)