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WARSAW, Sept 13 (Reuters) - The Polish zloty firmed on Wednesday after a government adviser said Poland had the tools to prop up the currency, while regional peers sought direction ahead of key developments in core markets. Poland's currency has been in rapid descent, dropping 4% since Polish rate-setters unexpectedly slashed borrowing costs by 75 basis points last week, coming close to the next technical support at 4.70 on Monday. "The government has instruments that were already effective in 2022 to strive toward the optimal exchange rate level. Liquidity on the Polish zloty has decreased, which should stabilise the currency," government adviser Pawel Borys told Bloomberg, according to Polish state-run news agency PAP. By 0957 GMT the zloty rebounded 0.8% against the euro to 4.6285. "It's due to comments by Borys," a Warsaw-based trader said, referring to Borys, who heads the state Polish Development Fund. Borys added that the zloty had weakened beyond the optimal level for the economy, according to PAP, which he put within the 4.4–4.6 per euro range, and that the central bank should take exchange rate issues into account in its decisions. Bank Pekao analysts called Borys's remarks a "verbal intervention on the zloty". "However, looking at the long-term perspective, we do not think that this effect on the zloty will last. We think that in the near future the zloty will return to gradual depreciation and that in the coming days EURPLN will attack the 4.70 level," Pekao economist Kamil Luczkowski said. Meanwhile investors were bracing for a crucial U.S. inflation report due later in the day for cues on the Federal Reserve's monetary policy path amid a hawkish shift in expectations from the European Central Bank's rate decision set for Thursday. The Hungarian forint balanced flat, holding onto gains made since late last week. "Lacking flows, the forint has been idle so far; with no data or event that could have potentially moved the currency, investors are eyeing tomorrow's ECB rate-decision," a Budapest-based trader said. The Czech crown firmed 0.4% to 24.4750 per euro, ending a losing streak since the end of August that had taken 2% off its value. CEE SNAPSHOT AT MARKETS 1157 CET CURRENCI ES Latest Previous Daily Change bid close change in 2023 Czech 24.4750 24.5600 +0.35% -1.30% crown Hungary 384.6500 384.6000 -0.01% +3.85% forint Polish 4.6285 4.6660 +0.81% +1.32% zloty Romanian 4.9700 4.9735 +0.07% -0.55% leu Serbian 117.1400 117.1800 +0.03% +0.14% dinar Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2023 Prague 1340.99 1334.280 +0.50% +11.59% 0 Budapest 57306.31 57316.65 -0.02% +30.85% Warsaw 1943.33 1949.57 -0.32% +8.44% Bucharest 14109.43 14094.91 +0.10% +20.97% Spread Daily vs Bund change in Czech spread Republic 2-year 5-year 10-year Poland 2-year 5-year 10-year FORWARD 3x6 6x9 9x12 3M interban k Czech Rep < 6.73 5.86 4.92 7.08 PRIBOR=> Hungary < 11.10 9.47 8.48 12.93 BUBOR=> Poland < 4.82 4.20 3.94 5.89 WIBOR=> Note: FRA are for ask prices quotes ************************************************** ************ (Reporting by Karol Badohal in Warsaw, Boldizsar Gyori in Budapest and Jason Hovet in Prague; editing by Mark Heinrich)