BUDAPEST, Dec 23 (Reuters) - The Hungarian forint weakened on Thursday, underperforming its regional peers, as a six-month freeze of retail mortgage rates concerned investors and a 20 basis-point hike of the one-week deposit rate disappointed some market participants. The forint added to its losses from the previous session and was 0.34% weaker and trading at 369.64 to the euro. Prime Minister Viktor Orban"s announcement that retail mortgage rates would be frozen for six months kept weighing on the currency, three FX traders in Budapest said. read more "Trying to give money to everyone ahead of the election will hurt the economy in the long term," one trader said. Early last month, Orban announced a three-month cap on fuel prices and has also targeted key voting groups with tax breaks and higher payouts ahead of the election. The burst in pre-election spending led to a record budget shortfall of 1 trillion forints in November. To cut the deficit, the government has decided to postpone investments worth 755 billion forints ($2.32 billion) next year. read more The forint was also pressured by the 20-basis-point hike of the one-week deposit rate, traders said, as it was smaller than last week"s 30-basis-point step. The central bank raised its one-week deposit rate to 3.8%, extending a series of interest rate hikes as it tries to curb inflation. read more The Czech crown extended its gains from the previous session when the central bank delivered a 100-basis-point rate hike, above expectations and said that it was ready to do more to rein in inflation. The hike brought the main policy rate to 3.75%, the highest since February 2008. The crown was up 0.11% at 25.102 per euro, trading at 22-month highs that it hit in the previous session. "Forward guidance remained hawkish, with Governor Rusnok guiding towards a terminal rate above 4.0%. The market quickly repriced monetary policy with expectations of the repo rate reaching 4.50% in three months," Morgan Stanley wrote in a note. Elsewhere, the Polish zloty slid 0.03% to 4.6325 per euro. Most stock markets in the region firmed, with Warsaw (.WIG20) adding 0.4% while Bucharest (.BETI) was 1.31% stronger. Budapest (.BUX) added 1%. Prague (.PX) edged down 0.03%. CEE MARKETS SNAPSHOT AT 1050 CET CURRENCIES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech crown 25.1020 25.1300 +0.11% +4.49% EURHUF= Hungary forint 369.6400 368.3900 -0.34% -1.87% EURPLN= Polish zloty 4.6325 4.6311 -0.03% -1.58% EURRON= Romanian leu 4.9495 4.9495 +0.00% -1.71% EURHRK= Croatian kuna 7.5150 7.5185 +0.05% +0.43% EURRSD= Serbian dinar 117.4800 117.5800 +0.09% +0.08% Note: daily change calculated from 1800 CET Latest Previous Daily Change close change in 2021 .PX Prague (.PX) 1421.93 1422.3700 -0.03% +38.44% .BUX Budapest (.BUX) 49574.59 49083.56 +1.00% +17.73% .WIG20 Warsaw (.WIG20) 2221.12 2212.32 +0.40% +11.95% .BETI Bucharest (.BETI) 12641.96 12478.43 +1.31% +28.93% .SBITOP Ljubljana (.SBITOP) 1236.32 1229.89 +0.52% +37.24% .CRBEX Zagreb (.CRBEX) 2039.63 2041.65 -0.10% +17.27% .BELEX15 Belgrade (.BELEX15) 824.44 829.54 -0.61% +10.13% .SOFIX Sofia (.SOFIX) 633.91 631.27 +0.42% +41.65% Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT=RR 2-year 3.5580 0.0110 +423bps -1bps CZ5YT=RR 5-year 3.2630 0.0120 +379bps -1bps CZ10YT=RR 10-year 2.9590 0.0860 +323bps +7bps Poland PL2YT=RR 2-year 3.1680 -0.0460 +384bps -6bps PL5YT=RR 5-year 3.8650 0.0370 +439bps +2bps PL10YT=RR 10-year 3.5120 0.0000 +379bps -2bps FORWARD 3x6 6x9 9x12 3M interbank Czech Rep 4.53 4.13 3.99 3.46 Hungary 5.03 5.14 5.12 3.94 Poland 3.60 3.83 3.82 2.40 Note: FRA quotes are for ask prices ************************************************************** ($1 = 325.9500 forints)