CEE MARKETS 1-FX mixed as markets eye Hungary rate decision

                                
 BUDAPEST, March 28 (Reuters) - Emerging European currencies
opened mixed on Monday, with the Hungarian forint retreating
slightly from last week's 11-month highs ahead of the central
bank's first rate meeting with a revamped Monetary Council.
                                
 Currencies across the region were held back as stocks dipped
and the euro was weaker after German Chancellor Angela Merkel's
conservatives lost power in a key state. [ID:nL3E7ES0VM]
                                
 The National Bank of Hungary will make its first interest
rate decision since Parliament elected four new members to the
Monetary Council, giving the governing Fidesz party's candidates
a majority over Governor Andras Simor and his two deputies.
                                
 Analysts expect the new council to leave borrowing costs
flat on Monday after three rate increases between November and
January moved the base interest rate <NBHI> to 6 percent from
5.25 percent. [ID:nLDE72M2OS] 
                                
 Last month the bank kept the key base rate unchanged.
                                
 However, analysts also see a chance that the new-composition
Monetary Council could launch monetary stimulus later this year
to boost lending and assist the government's pro-growth
policies. [ID:nLDE72L22B]
                                
 "The only significant event today is the Hungarian rate
decision," a Budapest-based dealer said. "We don't expect a
seismic shift, although the bank's comments could divert the
forint in either direction."
                                
 Poland's zloty <EURPLN=> ticked 0.1 percent higher by 0722
GMT, with the Czech crown <EURCZK=> flat. The Hungarian forint
<EURHUF=> eased 0.1 percent and the Romanian leu <EURRON=>
dipped 0.2 percent.
                                
 The Hungarian central bank also publishes its quarterly
inflation report on Monday, prepared with a new methodology that
foregoes fixed interest and exchange rate assumptions.
[ID:nLDE72L115]
                                
 Poland's central bank indicated that it was not finished
with rate increases, but its governor said the bank would be
cautious with further steps as it saw inflation risks contained
domestically. [ID:nLDE72R09T]
                                
 The Polish central bank will discuss rates on April 5, and
analysts expect it to hike rates to 4 percent from 3.75 now.
                                
 The Czech crown has stabilised after being knocked back at
the end of last week following the central bank's no-change
decision on rates as some positions that had bet on a rise were
unwound.
                                
 Dealers said the stronger sentiment that lifted other units
to multi-month highs will also stem the crown's weakening.
                                
 "It is pretty stable at these figures," a Prague dealer
said. "The whole region is pretty strong so this sentiment will
affect the crown."
                                
 Romania's leu hovered just off a one-year high hit on Friday
after the central bank said recent gains reflected a stronger
economy. [ID:nLDE72L18A]
                                
 The International Monetary Fund approved on Friday a new
precautionary aid deal for Romania worth a total of more than 5
billion euros, to be drawn on only if needed. [ID:nLDE72P08U]
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2011 
Czech crown      <EURCZK=>  24.536   24.532   -0.02%   +1.89%
Polish zloty     <EURPLN=>   4.008    4.012   +0.1%    -1.25%
Hungarian forint <EURHUF=>  266.63   266.28   -0.13%   +4.26%
Croatian kuna    <EURHRK=>   7.388    7.385   -0.04%   -0.11%
Romanian leu     <EURRON=>   4.094    4.085   -0.22%   +3.4%
Serbian dinar    <EURRSD=> 103.467   103.55   +0.08%   +2.38%
All data taken from Reuters at 0922 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
 
                                
 For related news and prices, click on the codes in brackets:
All emerging market news [EMRG]
Spot FX rates
Eastern Europe spot FX <EEFX=>    Middle East spot FX <MEFX=>
Asia spot FX <ASIAFX=>       Latin America spot FX <LATAMFX=>
Other news and reports  
World central bank news [CEN]  Economic Data Guide <ECONGUIDE> 
Official rates [GLOBAL/INT]  Emerging Diary [EMRG/DIARY] 
Top events [M/DIARY]  Diaries [DIARY] Diaries Index [IND/DIARY] 
 (Reporting by Reuters bureaux, writing by Marton Dunai, editing
by Catherine Evans)