CEE MARKETS-FX weaker as political, monetary policy worries weigh

Oct 27 (Reuters) - Central European currencies slipped on Wednesday, as worries over Poland's row with the European Union over the rule of law and the speed of monetary policy normalisation in Hungary weighed on the region. Financial markets are looking for signs of how fast policymakers will raise interest in a region facing the highest inflation in Europe. There are also concerns that Poland will miss out on billions in EU funds due to its clash with Brussels over judicial reforms. "The dispute with the European Union and the delay in the approval of the national recovery plan, concerns about the prospects for the global economy, as well as a stronger dollar are not conducive to the performance of the Polish currency," Bank Millennium said in a note. At 0927 GMT, the Polish zloty was 0.36% weaker against the euro at 4.6185. The Polish central bank unexpectedly hiked the cost of credit by 40 basis points to 0.5% in October. Governor Adam Glapinski is scheduled to address lawmakers in parliament later on Wednesday and might provide clues as to whether further hikes are possible before the end of the year. The Hungarian forint was 0.15% weaker against the euro at 365.44. The Hungarian central bank hiked its main base rate by 15 basis points to 1.8% in October, but markets have been uncertain about the pace of further tightening. After the rate hike, Deputy Governor Barnabas Virag had said the bank would continue raising rates in 15-basis-point steps until December, but was later cited as saying the central bank needs to tighten monetary conditions more than projected in September. "The euro-forint rate is stabilizing above the 365-level, investors consider the cycle of 15-basis-point rate hikes to be too slow ... according to a Morgan Stanley analysis the Czech central bank could raise rates by 1.5% this year," Equilor said in a note. The Czech crown was little changed at 25.7060. CEE SNAPSHO AT MARKETS T 1127 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech EURHUF= Hungary 0 EURPLN= Polish EURRON= Romania EURHRK= Croatia EURRSD= Serbian 0 Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1344.69 1340.820 +0.29% +30.92 0 % .BUX Budapes 54944.3 55191.91 -0.45% +30.49 t 5 % .WIG20 Warsaw 2395.70 2425.29 -1.22% +20.75 % .BETI Buchare 12806.5 12735.36 +0.56% +30.60 st 8 % .SBITOP Ljublja <.SBITOP 1185.95 1179.11 +0.58% +31.65 na > % .CRBEX Zagreb 2028.42 2047.05 -0.91% +16.62 % .BELEX1 Belgrad <.BELEX1 794.34 805.85 -1.43% +6.11% 5 e 5> .SOFIX Sofia 568.83 571.90 -0.54% +27.10 % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republi c CZ2YT=R s CZ5YT=R s CZ10YT= s Poland PL2YT=R s PL5YT=R s PL10YT= s FORWARD 3x6 6x9 9x12 3M interba nk Czech 3.42 3.58 3.64 2.15 Rep Hungary 2.81 3.13 3.39 2.02 Poland 1.69 2.09 2.47 0.71 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Ramakrishnan M.)