UPDATE 1-CEE MARKETS-Crown soars after Czech surprises with bigger rate hike

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 (Updates throughout after Czech rate decision)
    PRAGUE, Sept 30 (Businesshala) - The crown jumped the most in a
month on Thursday after the Czech National Bank surprised
markets with a bigger-than-expected 75 basis points interest
rate hike, the biggest in decades, as it accelerates a policy
tightening cycle.
    Czech rate markets climbed up to 5 basis points on the short
end. The crown soared as much as 0.8% on the day, trading up
0.75% at 25.300 to the euro at 1308 GMT — just off its highest
level since February 2020 hit earlier in September.
    Markets had already expected the bank's biggest rate hike
since 1997, with analysts in a Businesshala poll forecasting a 50
basis point increase, above a standard move of a quarter of a
percentage point.
    With inflation soaring in central Europe, even more than in
most other European markets due to tighter labour markets, Czech
and Hungarian rate setters were the first in the European Union
in June to begin hiking rates. 
    The extraordinary rise in Czech rates comes as Hungary's
central bank has slowed the pace of its hikes.
    Elsewhere, other central European currencies gained in
afternoon trade, with the Polish zloty rising 0.7% to
4.60 to the euro, after markets saw rising chances that Poland
could be next to see rate rises following minutes from the
central bank's last policy meeting.   
    In the Czech Republic, markets are pricing in further hikes
from the central bank this year and were tuned to an afternoon
news conference at 3:45 p.m. (1345 GMT) for clues on the pace of
tightening ahead. 
    
    
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1508              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2021
 EURCZK  Czech                                       
 EURHUF  Hungary                0        0           
 EURPLN  Polish                                      
 EURRON  Romanian                                    
 EURHRK  Croatian                                    
 EURRSD  Serbian                0        0           
         Note:     calcula                    1800            
         daily     ted                        CET      
         change    from STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2021
 .PX     Prague             1326.09  1320.93   +0.39%   +29.11
                                          00                 %
 .BUX    Budapest           52794.5  52004.6   +1.52%   +25.38
                                  2        0                 %
 .WIG20  Warsaw    <.WIG20  2303.48  2290.97   +0.55%   +16.10
                   >                                         %
 .BETI   Buchares           12623.4  12615.4   +0.06%   +28.74
         t                        1        6                 %
 .SBITO  Ljubljan  <.SBITO  1171.59  1172.17   -0.05%   +30.05
 P       a         P>                                        %
 .CRBEX  Zagreb    <.CRBEX  1998.86  1983.63   +0.77%   +14.92
                   >                                         %
 .BELEX  Belgrade  <.BELEX   802.81   802.37   +0.05%   +7.24%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   584.00   580.76   +0.56%   +30.49
                   >                                         %
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year                                s  
 CZ5YT=    5-year                                s  
 CZ10YT                                         s  
         Poland                                               
 PL2YT=    2-year                                s  
 PL5YT=    5-year                                s  
 PL10YT                                         s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech                                      
         Hungary                                     
         Poland                                      
         Note: FRA quotes                                     
         are for ask                                   
         prices                                        
         ***********************************                  
         ***************************                   
                                                              
 
    

 (Reporting by Jason Hovet in Prague, Alicja Ptak in Warsaw, and
Anita Komuves in Budapest; Editing by Rashmi Aich and
Uttaresh.V)
  
 
 
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