CEE MARKETS-Forint firms after central bank leaves base rate unchanged

Updates with Hungary central bank decision, trader comment

By Anita Komuves

BUDAPEST, Jan 28 (Reuters) - The Hungarian forint edged higher on Tuesday and stayed near a two-month high after the central bank left its base rate unchanged while the Polish zloty rose to its strongest versus the euro since 2018.

The forint EURHUF= firmed immediately after the National Bank of Hungary announced its decision and was up 0.22% versus the euro on the day, trading at 407.9 by 1327 GMT.

The NBH left its base rate at 6.5%, as widely expected, the joint highest level in the European Union amid concerns that a leadership change in March could lead to premature rate cuts to stimulate the sluggish economy ahead of a 2026 election.

"The forint firmed a bit after the bank's decision and could crawl a bit further after the press conference, but I do not think there will be a significant movement as I expect no surprises," an FX trader in Budapest said.

The bank will publish its statement and hold a press conference at 1400 GMT.

"Global inflation risks have not exactly diminished since Donald Trump took office, and officials will probably want to wait and see how the future head of the central bank wants to direct monetary policy," Commerzbank wrote in a note before the NBB's decision was announced.

Elsewhere, the Polish zloty EURPLN= added 0.13% and was trading at 4.2075 versus the euro after reaching its strongest level since 2018 at 4.2045 earlier in the day.

The Czech crown EURCZK= edged up 0.01% to 25.075 per euro, holding on to its gains from last week.

"The dollar firmed after Trump's latest tariff comments, but currencies in the region are stable, they got through it fine," another currency trader in Budapest said.

Central European markets were still affected by uncertainty around U.S. President Donald Trump's plans as tariffs could hit the region's export-dependent economies, traders and analysts said.

Trump said on Monday that he would impose tariffs on aluminium and copper as well as steel.

The Polish zloty EURPLN= added 0.13% and was trading at 4.2075 versus the euro after reaching its strongest level since 2018 at 4.2045 earlier in the day.

Stocks in the region were mixed, with Prague's index .PX sliding 0.37% while Budapest .BUX slid 0.1%. Warsaw .WIG20 gained 0.56%.

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