Hungary’s central bank raised a supplemental interest rate on June 16, acting outside its recent monetary policy framework, as the country’s currency hit record lows.

The Central Bank of Hungary (MNB) raised the one-week deposit rate by 50 basis points to 7.25%, one day after the US Federal Reserve’s 75bp hike. On the same day as the MNB’s action, Hungary’s forint reached what were then all-time record lows against both the US dollar and the euro.

The MNB did not issue an official statement on