By Susan Mathew and Bansari Mayur Kamdar

Dec 8 (Reuters) - The Polish zloty outperformed central European currencies on Thursday after the central bank governor said policy would stay conservative, while global recession worries saw Latin American currencies make muted moves against a weaker dollar.

The zloty EURPLN= held on to the day's gains against the euro, last up 0.2%. The central bank on Wednesday left the policy rate unchanged at 6.75% for the third month in a row. Governor Adam Glapinski said inflation was expected to start declining in March or April but that policy would stay conservative.

Other central European currencies fell, with Hungary's forint EURHUF= sliding 1.4% as expectations of stubborn inflation fueled fears of real interest rates falling deeper into negative territory.

In Latam, currency moves were more muted with Brazil's real BRBY up 0.2%. The Senate approved on Wednesday a constitutional amendment to increase the government spending cap, raising it by 145 billion reais ($27.8 billion) for each year, lesser than the 175 billion reais initially proposed.

Late on Wednesday, Brazil's central bank held its key rate at 13.75%, as expected.

"We maintain our expectation that (Brazil's central bank) is most likely sitting on their hands throughout 23H1," said Rabobank strategists.

"If the new administration maintains fiscal credibility and inflation expectations do not de-anchor, then the (bank) would start the easing cycle only by end-23Q2, until reaching 11.00% by end-2023."

Peruvian markets were closed for a local holiday. The sol PEN= currency slumped on Wednesday after President Pedro Castillo was impeached and Vice President Dina Boluarte was sworn in.

"The lack of any true leader makes for more headwinds to come short-term and volatility too high to make any strong forecast," said Juan Perez, director of trading at Monex USA.

The Mexican peso MXN= was flat to lower after data showed annual consumer prices rose 7.8% in the year through November, slowing down from the previous month to reach its lowest level since May.

Following the data, Capital Economics now expects Mexico's central bank to deliver a 50 basis points increase in interest rates this month followed by a final 25bps hike to 10.75% in February.

Key Latin American stock indexes and currencies:

Stock indexes

Latest

Daily %

change MSCI Emerging Markets

970.77

1.25 .MSCIEF

MSCI LatAm

2182.62

0.5 .MILA00000PUS

Brazil Bovespa

108998.39

-0.06 .BVSP

Mexico IPC

51073.93

0.69 .MXX

Chile IPSA

5202.85

-0.69 .SPIPSA

Argentina MerVal

171177.89

1.837 .MERV

Colombia COLCAP

1229.65

-0.56 .COLCAP

Currencies

Latest

Daily %

change Brazil real

BRBY

5.1949

0.21

Mexico peso

19.6836

-0.14 MXN=D2

Chile peso

CLP=CL

865

0.00

Colombia peso COP=

4819.35

-0.05 Argentina peso

169.8700

-0.22 (interbank) ARS=RASL

Reporting by Susan Mathew in Bengaluru; Editing by Andrea Ricci