BUDAPEST, Dec 30 (Reuters) - Hungary"s forint firmed 0.5% versus the euro early on Thursday, leading gains among central European currencies, after the National Bank of Hungary (NBH) raised its one-week deposit rate by another 20 basis points to 4%. At 0845 GMT, the forint traded at 368.6 per euro, paring some of its losses for the year to 1.6%, second-worst in the region behind the Romanian leu . Most other central European currencies were mildly positive. Hungary"s one-week deposit rate now sits 220 basis points above its mid-November level, when the NBH kicked off its weekly hikes to shore up the forint, which sank to a record low at 372 versus the euro last month. Traders said low market liquidity at the end of the year amplified moves in the forint, adding however, that the bank"s successive hikes and expectations for more rate tightening next year were probably starting to have an impact. NBH Governor Gyorgy Matolcsy said on Monday that the base rate, currently at 2.4% (HUINT=ECI), would reach the level of the one-week deposit rate in the first half of 2022. He also said a government move to freeze retail mortgage interest rates for six months from January confirmed the bank"s stance that it must act "in the most decisive manner" to rein in inflation, which rose to a 14-year high last month. read more "Given that borrowers are now shielded from the rate rises, the NBH can also raise the base rate more aggressively," a Budapest-based currency dealer said. "I think the NBH has probably realised that foreign investors cannot stomach this complex system of interest rates." Another trader also said Thursday"s rate rise supported the forint, although he added that major gains were unlikely for now. The Czech crown , the region"s top performer this year with a 5% gain for the year due to aggressive rate tightening, firmed 0.2% in early trade. On Wednesday Czech ministers said the new centre-right government would freeze the pay of state workers and reduce previously announced pay hikes for others as it seeks to cut the budget gap amid a spike in inflation. read more CEE MARKETS SNAPSHOT AT 0945 CET CURRENCIES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech crown 24.9220 24.9700 +0.19% +5.24% EURHUF= Hungary forint 368.6000 370.6000 +0.54% -1.60% EURPLN= Polish zloty 4.5922 4.5960 +0.08% -0.72% EURRON= Romanian leu 4.9505 4.9505 +0.00% -1.73% EURHRK= Croatian kuna 7.5190 7.5215 +0.03% +0.38% 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) 1424.94 1425.0600 -0.01% +38.73% .BUX Budapest (.BUX) 50502.48 50342.57 +0.32% +19.94% .WIG20 Warsaw (.WIG20) 2259.86 2260.70 -0.04% +13.91% .BETI Bucharest (.BETI) 13084.46 13068.03 +0.13% +33.44% .SBITOP Ljubljana (.SBITOP) 1266.96 1272.32 -0.42% +40.64% .CRBEX Zagreb (.CRBEX) 2078.60 2076.26 +0.11% +19.51% .BELEX15 Belgrade (.BELEX15) 824.20 827.63 -0.41% +10.10% .SOFIX Sofia (.SOFIX) 641.50 641.24 +0.04% +43.34% Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT=RR 2-year 3.7390 0.0630 +435bps +6bps CZ5YT=RR 5-year 3.3280 0.0510 +378bps +4bps CZ10YT=RR 10-year 2.9800 0.0180 +316bps +1bps Poland PL2YT=RR 2-year 3.4080 0.0830 +402bps +8bps PL5YT=RR 5-year 4.0450 -0.0280 +449bps -4bps PL10YT=RR 10-year 3.6590 0.0310 +384bps +3bps FORWARD 3x6 6x9 9x12 3M interbank Czech Rep 4.61 4.13 3.99 4.06 Hungary 5.18 5.31 5.33 4.05 Poland 3.86 4.13 4.10 2.50 Note: FRA quotes are for ask prices **************************************************************