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Egypt Unexpectedly Raises Interest Rates by 200 Basis Points

  • Central bank has raised rates by 700 basis points since Nov.
  • Only one out of 8 economists predicted a rate increase
Egypt central bank
Photographer: Shawn Baldwin/Bloomberg
Updated on

Egypt’s central bank unexpectedly raised its benchmark interest rates by 200 basis points for the second time this year in an effort to control inflation after the government raised fuel and electricity prices.

The Monetary Policy Committee, led by Governor Tarek Amer, raised the overnight deposit rate to 18.75 percent, a record high, the bank said on Thursday. The lending rate was also raised to 19.75 percent. All but one of the eight economists surveyed by Bloomberg had forecast the rates would remain unchanged.