CEE MARKETS-Currencies hold their gains, Romania rate decision due

By Alan Charlish

WARSAW, Aug 8 (Reuters) - Central European currencies were hanging on to gains from the previous session on Friday amid growing hopes for a breakthrough to end the war in Ukraine, while investors were looking ahead to an interest rate decision in Romania.

The Kremlin said on Thursday that Vladimir Putin and Donald Trump will meet in the coming days, raising hopes of a potential peace deal in Ukraine and boosting central European assets.

On Friday, investors were looking ahead to an interest rate decision in Romania scheduled for 1200 GMT. Analysts expect the cost of credit to remain on hold at 6.50%, and the leu EURRON= was broadly steady versus the euro at 5.0749.

"The market will focus on comments regarding fiscal consolidation and the potential impact on inflation," ING said in a note.

Romania's government, which has hiked value-added tax and excise duties as of this month, needs to rein in the European Union's widest budget deficit if it is to keep its investment grade credit rating. But coalition partners are split over potentially unpopular spending cuts.

"Should the measures prove insufficient, we could see a return of pressure on the RON," ING said.

The Czech crown EURCZK= was 0.14% firmer at 24.426 after having tightened up by 0.4% in the previous session. On Thursday the Czech National Bank left its main interest rate steady at 3.50% for a second straight meeting, saying inflation pressures did not allow further easing yet.

"The Czech crown... appreciated further yesterday after the Czech National Bank's (CNB's) fresh hawkish language," Commerzbank said in a note.

"(Governor Ales) Michl reiterated that all options remain open – but, we do not think that many market participants are anticipating rate hikes. Rather the time frame for unchanged interest rates will be prolonged."

The Hungarian forint EURHUF= firmed 0.21% to 395.80.

"The Ukrainian-Russian headlines are clearly positive news for Hungary, which remains by far the most reliant on Russian energy imports among Central and Eastern European countries," ING said in a note.

Trump has threatened new sanctions from Friday against Russia and countries that buy its exports unless Putin agrees to end the 3-1/2-year conflict.

The Polish zloty EURPLN= was stable at 4.253.