Egypt hikes rates to combat rampant inflation

The Central Bank of Egypt hiked its benchmark rate half a point and its discount rate a full percentage point on Thursday in a bid to combat inflation, now at a 19-year high.

The benchmark overnight deposit rate now stands at 10.5%, with the overnight lending rate also rising 50 basis points to 12.5%. The discount rate is 10%.

The rate increases follow a surge in annual inflation in the year to May. Inflation rose from an annualised 16.4% in April to 19.7% last month after the government raise