Czech Republic - Factors To Watch on Oct 26

PRAGUE, Oct 26 (Reuters) - Here are news stories, press reports and events to watch which may affect Czech financial markets on Thursday:

RATES SEEN ON HOLD

Central bank (CNB) policymakers are almost universally expected to keep interest rates on hold at Thursday's meeting, but a slim majority of analysts polled by Reuters forecast further tightening before the year-end to keep inflation at bay.

An interest rate announcement is expected sometime after 12 p.m. (1000 GMT), with a news conference to follow at 3:30 p.m. (1330 GMT).

[ID:nL20451838] [CNB/INT]

- For TABLE detailing analysts' interest rate forecasts, double click on [ID:nL20536892].

- For FACTBOX on monetary decisions in central Europe, click on [ID:nL23820301].

BUDGET DEBATE

The lower house of parliament starts debating the 2007 budget draft in the first out of three required readings.

The draft budget looks likely to clear its first parliamentary hurdle after Finance Minister Vlastimil Tlusty said on Tuesday opposition parties had signalled they could vote for the minority government's plan.

[ID:nL24924622] [RTRS-LEN-CZ-GVD]

EURO TARGET DELAY

A yawning fiscal deficit forced the Czech Republic on Wednesday to drop its aim of adopting the euro in 2010, reinforcing the market's view that euro zone entry was a distant prospect for larger central European economies.

[nL25734501] [RTRS-LEN-CZ-EUR]

- For FACTBOX listing key recommendations and forecasts in new euro adoption road map, double click on [ID:nL25380203].

CONFIDENCE INDICATORS

The statistical bureau's October confidence indicators are due for release at 9 a.m. (0700 GMT).

[RTRS-LEN-CZ-ECI]

- For calendar of real-time economic data releases and consensus market forecasts, double click on <ECONCZ>.

MOODY'S CONFERENCE

Moody's Investors Service organizes conference "Ratings in Central Europe".

[RTRS-LEN-CZ-AAA]

AERO SALE

The government approved the sale of Czech military jet maker Aero Vodochody to Oakfield, a unit of investment group Penta.

[nB449869] [RTRS-LEN-CZ-MRG]

INTERVIEW: UNIPETROL SEES FLAT PROFIT

Downstream oil processing group Unipetrol <UNPEsp.PR> expects 2006 operating profit to remain flat this year, Chief Executive Francois Vleugels told Reuters in an interview.

[nL25329188] [RTRS-LEN-CZ-UNPEsp.PR]

ELECTION CALL

A leftist Social Democrat member of the Czech parliament quit his parliamentary party on Wednesday, dealing a blow to the party's standing in a battle for control of parliament and the government.

But the right-wing Civic Democrat government, which lost a confidence vote earlier this month, will not try to enlist the defector and will stick to its demand for early elections.

[nL25708424] [RTRS-LEN-CZ-POL]

CEZ WARSAW DEBUT

Czech power group CEZ <CEZPsp.PR> <CEZP.WA> gained nearly five percent on its Warsaw bourse debut on Wednesday which made it the biggest stock on central Europe's leading exchange and the bourse's first listed major utility.

[nL25923528] [RTRS-LEN-CZ-CEZPsp.PR]

POLL: CROWN SEEN FIRMING

The Czech crown is likely to rally more than 2 percent to new all-time highs of 27.70 per euro <EURCZK=> over the next 12 months, extending a long-term trend fed by rising exports, a Reuters poll shows.

[ID:nL1863825] [ID:nL18826170] [CZK/POLL]

Individual forecasts can be accessed through the following page <CZ/ECON07>.

Overview of past economic data and market forecasts <CZ/ECON15> For Instant Views of key economic data click on [CZ/INSTANT] For summary of economic data and forecasts <CZ/ECON01> For diary of forthcoming Czech events [CZ/DIARY] For calendar of east European economic indicators [CONV/DIARY] TOP NEWS -- Emerging markets [TOP/EMRG] TOP NEWS -- Convergence watch [TOP/EAST]

For an economic indicator diary for the euro zone, the United States and other Group of Seven countries see <G7TODAY>

For real-time stock market index quotes click in brackets: Warsaw WIG20 <.WIG20> Budapest BUX <.BUX> Prague PX <.PX>

News editor of the day: Alan Crosby on +420 224 190 477; fax: +420 224 229 935

E-mail: prague.newsroom@reuters.com

Reuters Messaging: alan.crosby.reuters.com@reuters.net

((Compiled by Marek Petrus; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))