Hungary on Wednesday raised its base interest rate 300 basis points to 11.5 per cent in an attempt to support the currency and stabilise financial markets reeling from the global credit crisis.

After opening at Ft280.12 to the euro, the forint spiked to Ft271.50 when the central bank made its surprise decision before settling back at Ft274.35, up 0.2 per cent in late London trading but down about 16 per cent since the end of September.