BUCHAREST, May 17 (Reuters) - Central and eastern European stocks and currencies firmed on Tuesday buoyed by strong first-quarter economic growth, with the Hungarian forint leading gains after hawkish rate comments by a central bank deputy governor.

Central Europe's economies roared ahead in the first quarter due partly to robust domestic demand, preliminary GDP data showed, but surging inflation and the impact of the Ukraine war are set to dampen growth later this year.

By 0905 GMT, Hungary’s bluechip index .BUX led gains among the region’s stocks, up 2.6% on the day. Warsaw’s index .WIG20 was up 1.9%, while Prague’s .PX and Bucharest’s .BETI rose 1.4% and 1.0%, respectively.

The Hungarian forint EUHUF= was up 0.9% on the day at 307.2000 per euro from its lowest levels since early March hit in Monday’s session, a Budapest-based currency dealer said.

Earlier on Tuesday, Deputy central bank Governor Barnabas Virag said a further increase in real interest rates was needed in Hungary to wrestle down inflation over the medium term.

Virag, who said last week the aggressive period of rate hikes was over and a more gradual approach can be expected, also said a slowdown in the pace of hikes will not result in a lower interest rate peak than previously planned.

Elsewhere in the region, the Czech crown EURCZK= and Polish zloty EURPLN= were each up 0.2% on the day, while the Romanian leu EURRON= was flat.

The region's largest economy, Poland, grew by 8.5% year on year, exceeding expectations for 7.9% growth. Romania's economy expanded 6.5% on the year in the first quarter, sharply above market expectations of 2.2%.

Hungary's economy expanded by an annual 8.2% in the first quarter, above analysts' forecasts for 6.9% growth.

"As for the outlook, it is not so favourable, however," Erste Bank said in a research note.

"The Russian-Ukrainian war and wider level of economic sanctions would not leave the Hungarian economy untouched either from the second quarter onwards. The coming quarters could thus bring a gradual slowdown in annual GDP growth rates."

CEE

SNAPSHO AT

MARKETS T

1224

CET

CURRENC

IES

Latest Previou Daily

Change

s

bid

close

change in 2022 Czech

<EURCZK= 24.6930 24.7460 +0.21% +0.72% crown

>

Hungary <EURHUF= 386.750 390.600 +1.00% -4.49% forint

>

0

0

Polish

<EURPLN= 4.6535 4.6650 +0.25% -1.34% zloty

>

Romanian <EURRON= 4.9475 4.9470 -0.01% +0.01% leu

>

Croatian <EURHRK= 7.5230 7.5225 -0.01% -0.07% kuna

>

Serbian <EURRSD= 117.440 117.480 +0.03% +0.12% dinar

>

0

0

Note:

calculated from

1800

daily

CET

change

Latest Previou Daily

Change

s

close

change in 2022 Prague

.PX

1316.46 1297.38 +1.47% #VALUE!

00

Budapest .BUX

42324.6 41248.0 +2.61% -16.55%

9

2

Warsaw

.WIG20 1802.00 1762.22 +2.26% -20.51% Buchares .BETI

12212.1 12098.9 +0.94% -6.50% t

4

2

Ljubljan <.SBITOP 1136.79 1136.81 -0.00% -9.45% a

>

Zagreb

.CRBEX 2083.74 2077.86 +0.28% +0.21% Belgrade <.BELEX1 818.61 817.26 +0.17% -0.26%

5>

Sofia

.SOFIX

604.32 600.70 +0.60% -4.93%

Yield

Yield

Spread Daily

(bid)

change vs Bund change

in Czech

spread Republic

2-year <CZ2YT=R 5.7610 -0.0220 +559bp

-6bps

R>

s 5-year <CZ5YT=R 5.3600 -0.0390 +471bp

-9bps

R>

s

<CZ10YT= 5.1720 -0.0690 +418bp -12bps 10-year RR>

s Poland

2-year <PL2YT=R 6.3010 -0.0160 +613bp

-5bps

R>

s 5-year <PL5YT=R 6.9000 -0.0460 +625bp

-9bps

R>

s

<PL10YT= 6.6810 -0.0330 +569bp

-9bps 10-year RR>

s

FORWARD

3x6

6x9

9x12

3M

interba

nk Czech

CZKFRA

6.80

6.75

6.36

6.03 Rep

<PRIBOR=

>

Hungary

HUFFRA

7.99

8.36

8.35

6.81

BUBOR=

Poland

PLNFRA

7.28

7.39

7.35

6.42

WIBOR=

Note:

are for ask

FRA

prices

quotes

*********************************************

*****************

Reporting by Luiza Ilie in Bucharest and Gergely Szakacs in Budapest; Editing by Kirsten Donovan