CAIRO, March 21 Egypt's central bank raised its
interest rates on Thursday by 50 basis points, taking the
overnight deposit rate 9.75 percent and the overnight lending
rate 10.75 percent, the bank said on its website after its
monetary policy committee (MPC) met.
Before the meeting, economists had been split on whether the
bank would hold rates to avoid damaging a very weak economy, or
raise them in the hope of curbing a sharp rise in inflation and
supporting the Egyptian pound.
The pound has lost 9 percent of its value against the dollar
since late last year, pushing up the cost of imported goods.
Inflation in towns and cities jumped to 8.2 percent in the year
to February from 6.3 percent in January.