CEE MARKETS 1-Zloty gains, crown steady ahead of rate meeting

                                
* Czech cbank seen making final rate cut in easing cycle
                                
 * Scope for further cuts in Polish rates minimal
                                
 * Hungary's retail sales fall further
                                
 
                                
 BUDAPEST, June 25 (Reuters) - Poland's zloty <EURPLN=>
inched higher early on Thursday, helped by gains for world
stocks and hopes Wednesday's cut in interest rates may have
brought the premium for holding the currency close to a bottom. 
                                
 Hungary's forint was also higher, as gains for stocks
signalled an improvement in appetite for riskier emerging market
assets, while the Czech crown was broadly unchanged ahead of an
interest rate decision later in the day.
                                
 One Polish Monetary Policy Council (MPC) member said there
was not much room for more monetary easing in Poland and the
central bank may not need to lower borrowing costs again until
the end of the year [ID:nWAR008479].
                                
 "The room for more interest rate cuts is minimal," Halina
Wasilewska-Trenkner, who has opposed some of the higher rates,
told radio PiN. "I personally see no need to cut rates again
until the end of the year."
                                
 On Wednesday, policymakers cut the central bank's key rate
by 25 basis points to a fresh all-time low of 3.5 percent,
mainly in response to weaker economic growth outlook.
                                
 "The zloty is forming after the rate cut, the CZK is strong
so they are likely to have the nerves to cut rates further, the
region as a whole is stronger so this may lend support to easing
in Czech (rates)," a Budapest-based currency dealer said.
                                
 The zloty rose as high as 4.50 to the euro in early trade
before trimming gains.
                                
 The crown <EURCZK=> held steady. The Czech central bank is
expected to cut its main policy rate by a quarter point to a new
all-time low, reflecting a deep output drop in the central
European economy [ID:nLP670485].
                                
 Czech rate setters have slashed borrowing costs by 225
basis points since August, supporting the economy that
contracted by 3.4 percent in the first quarter after years of
fast growth.
                                
 The forint <EURHUF=> opened a shade firmer after Wednesday's
rally despite data showing continued weakness in consumer
spending [ID:nBUD003025] and a dealer said hot money flows could
push the forint near the 275 per euro level in the near term.
                                
 "We may see some excitement today around the 275 level, but
this may be an overly optimistic (projection), the flows will
decide, they have moved the forint in its recent range, a few
bigger players are moving the market," a dealer said.
                                
 "This is an entirely flow-driven market."
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   26.025    26.023  -0.01%    +2.8%
Polish zloty     <EURPLN=>    4.504     4.514  +0.22%    -8.64%
Hungarian forint <EURHUF=>   277.29    277.52  +0.08%    -4.96%
Croatian kuna    <EURHRK=>    7.305     7.304   -0.01%   +0.82%
Romanian leu     <EURRON=>    4.218     4.221  +0.07%    -4.83%
Serbian dinar    <EURRSD=>    93.75    93.74   -0.01%    -4.55%
All data taken from Reuters at 0859 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
 (Reporting by Reuters bureaus, writing by Gergely Szakacs;
editing by Patrick Graham)