CEE MARKETS 4-CZK steady after rate vote, other FX weaker

                                
 * Czechs hold rates; vote on hike for first time since 2008
                                
 * Poland's central bank voted on 50 bps hike -minutes
                                
 * Hungary's bonds sell well, secondary market little moved
                                
 * Audi will invest 900 mln euro in Hungary
                                
 
  (Updates with Audi news in Hungary)
                                
 By Marton Dunai and Dagmara Leszkowicz
                                
 BUDAPEST/WARSAW, Sept 23 (Reuters) - The Czech crown
shrugged off weakness in emerging European currencies after the
country's central bank left interest rates unchanged but put a
rate hike to a vote for the first time since 2008.
                                
 Interest rates have dropped to record lows throughout
central Europe in the past two years to help economies cope with
a downturn in foreign trade.
                                
 But with a fragile economic recovery starting to gain some
traction, analysts are expecting rate rises this year or next in
Czech Republic and Poland as they rebound faster than Hungary or
Romania.
                                
 The Czechs left the main interest rate flat at a record low
0.75 percent as expected, keeping policy loose due to the
strength of the crown and the lack of other inflationary
pressures in a slowly recovering economy. [ID:nLDE68L0F6]
                                
 But one member of the seven-strong bank board voted for a
hike for the first time since June 2008, the last meeting before
the Czechs embarked on a 300 basis point easing cycle that ended
in May.
                                
 The vote on the hike option came earlier than many in the
market had expected despite more hawkish rhetoric in the past
month from board members, who said they either wanted to debate
a hike soon or that they were uncomfortable with rates at such a
low level.
                                
 The crown <EURCZK=> was little changed after the vote and
later press conference, while interest rate swaps were unmoved.
Markets are pricing in flat rates until the middle of 2011.
                                
 "I expect rates will be stable this year, and hikes next
year... With the crown it is quite difficult to expect rate
hikes in the Czech Republic," said UniCredit fixed income dealer
Robert Weiner. "I don't think (today's vote) will influence the
market too much."
                                
 
                                
 POLISH ALSO VOTE ON HIKE
                                
 Minutes from the Polish central bank's sitting in August
showed the council voted on, but did not agree to implement, a
50 basis point rate hike -- larger than the market had assumed
last month, when one central banker had said an increase was
discussed. [ID:nLDE68M18A]
                                
 Polish bonds weakened following the statement, and bond
yields rose 2 basis points at the shorter end of the curve,
while the zloty <EURPLN=> was some 0.3 percent weaker to the
euro.
                                
 The key interest rate stands at an all-time low of 3.5
percent in Poland and a big majority in the market expects the
10-strong body to raise borrowing costs by 25 basis points by
the end of 2010.
                                
 In Hungary the government debt agency sold 55 billion
forints of bonds at a primary auction, 5 billion more than
planned, but traders said market reaction was limited and top-up
tender results disappointed.
                                
 Hungary's forint <EURHUF=> trimmed some of its previous
losses after German carmaker Audi AG <NSUG.DE> said it would
invest 900 million euros to expand its Hungarian manufacturing
plant. [ID:nLDE68M1N8]
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>  24.611   24.58    -0.13%   +6.94%
Polish zloty     <EURPLN=>   3.963    3.949   -0.35%   +3.56%
Hungarian forint <EURHUF=> 279.83   278.71    -0.4%    -3.39%
Croatian kuna    <EURHRK=>   7.268    7,283   +0.21%   +0.57%
Romanian leu     <EURRON=>   4.259    4.258   -0.02%   -0.51%
Serbian dinar    <EURRSD=> 105.44   105.4     -0.04%   -9.07%

Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +6 basis points to  106bps over bmk*
7-yr T-bond   CZ7YT=RR   +6 basis points to  +102bps over bmk*
10-yr T-bond   CZ9YT=RR   +10 basis points to  +112bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +8 basis points to  +401bps over bmk*
5-yr T-bond   PL5YT=RR   +10 basis points to  +380bps over bmk*
10-yr T-bond PL10YT=RR   +6 basis points to  +319bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +6 basis points to  +595bps over bmk*
5-yr T-bond   HU5YT=RR   +8 basis points to  +557bps over bmk*
10-yr T-bond   HU10YT=RR +6 basis points to  +466bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1646 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
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(Reporting by Reuters bureaux, writing by Marton Dunai;
Editing by John Stonestreet/Ruth Pitchford)