PRAGUE, Sept.21 (Reuters) – The forint and the Czech koruna rebounded on Tuesday as markets tuned in to the Hungarian central bank meeting where the pace of rate hikes could ease and Czech markets betting on a more marked increase in borrowing costs. Central European markets were knocked down on Monday by nervousness from global investors, although they stabilized on Tuesday amid greater confidence that contagion of distress from indebted Chinese developer Evergrande would be limited. The Budapest and Warsaw stock markets rose around 1% and Prague by 0.6% after heavy losses on Monday. Most central European currencies drifted on Tuesday, with the exception of the Hungarian forint and the Czech crown which strengthened as investors count on higher interest rates. Czech central banker Tomas Holub told Reuters in an interview published on Tuesday that he would likely support a 50 basis point rate hike at the next policy meeting on September 30, adding to signals that the central bank may carry out its move. biggest increase since 1997 next week. . Hungary’s central bank is expected to raise its policy rate 25 basis points to 1.75% on Tuesday, slowing the pace of tightening after three successive 30 basis point increases since June. Analysts at Erste Group Bank said any move between 15 and 30 basis points was possible. “New inflation and growth forecasts may offer additional insight into the outlook for monetary policy,” he said. The forint was up 0.4% to 352.99 per euro at 08:49 GMT. The crown gained 0.2% to 25.415 per euro. Both currencies have registered gains so far in 2021, with their respective central banks being the first in the European Union to start raising interest rates to tackle inflationary pressures resulting from the recovery from the coronavirus pandemic and amid global supply issues increasing costs for producers. The Czech central bank has achieved two increases of 25 basis points since June and markets expect the bank to opt for a steeper rise of 50 basis points at its September meeting. Expectations rose on Tuesday after comments from Holub, which followed a similar tone from other central bank board members last week, indicating that a majority on the board is forming. Market interest rates rose at the start of trading. In Poland, the zloty eased 0.1% on the day to 4.615 per euro. The Polish central bank, unlike its Hungarian or Czech counterparts, has been cautious in initiating rate hikes despite a surge in inflation, as it seeks to avoid hurting the recovery. SNAPSHOT EEC AT 1049 CET MARKETS T CURRENCIES Last daily auction close variation in 2021 EURCZK Czech EURHUF Hungary 0 0 EURPLN Polish EURRON Romanian EURHRK Croatian EURRSD Serbian 0 0 Note: Calculated from 1800 daily variation CET STOCKS Last previous daily variation in 2021 .PX Prague 1293.44 1285.49 + 0.62% +25.93 00% .BUX Budapest 51420.6 50982.1 + 0.86% +22.12 3 5% .WIG20 Warsaw <.wig20> % .BETI Buchares 12,336.2 12,220.9 + 0.94% +25.81 t 0 9% .SBITO Ljubljan <.sbito p a> % .CRBEX Zagreb <.crbex> % .BELEX Belgrade <.belex> .SOFIX Sofia <.sofix> % BONDS Yield Spread Daily variation (bid) vs Bund variation Czech Republic CZ2YT = 2 years CZ5YT = 5 years CZ10YT s Poland PL2YT = 2 years s PL5YT = 5 years s PL10YT s FRA 3×6 6×9 9×12 3M interbank Czech Hungary Poland Note: the FRA quotes are for the asking prices **** *************************************** *********** * ******** (Report by Jason Hovet Editing by Raissa Kasolowsky)