The cost of the currency rose 37% on the day and the value of the currency rose from 25.152 to 375 before the announcement, the key two-week repo rate will be raised to 3.75%. That's the highest since February 2008.
A Reuters survey predicted a 75-basis-point increase.
The bigger hike of the National Bank suggests that it doesn't want to see koruna weaker amid rising inflationary risks. We think a more efficient front-loading (as far as we know, the incoming front-loading is also an option from the staff perspective), is an extension of our forecast to an American rate rate of 4.25% in Q1-2022, wrote Jaromir Sindel.
Central European policymakers raised interest rates to curb inflation, who hit its peak in 2009 with the highest in the country.
The Hungarian forint was making a weak 0.46% and traded at 369,10 per euro, a cent off its record low of 372 and down 0.6% in November.
In fact, he said, he had informed the press about his announcement that retail mortgage rates would be frozen at end of October, said the FX trader in Budapest.
Odaga's shares fell to a five-month low after the announcement. The bank's shares fell more than 7% in 1436 GMT. Budapest's 2.79% fell, but the losses were subdued by a fall in OTP.
There, the Polish zloty weakened a 0.18% sydney to 4.385 Euro.
The rise in price and reliance on the energy will provide for a continued rise in wages, as well as higher inflation will aid further zloty appreciation from the new year, while normal trade returns comeback, says ING BSK.
The stock markets in the region were mixed, Warsaw adding 0.58%. Prague was a 0.5% better, while Bucharest added 0.81%.
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