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

(Updates throughout after Czech rate decision) PRAGUE, Sept 30 (Reuters) - 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 Reuters 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)