The Central Bank of Egypt decided Thursday to raise its benchmark interest rates by 200 basis points to control inflation as the country is implementing a harsh reform program, Xinhua reported. The bank raises the overnight deposit rate, overnight lending rate, and the rate of the CBE’s main operation by 200 basis points to 18.75%, 19.75%, and 19.25%, respectively. In a statement released Thursday night, the CBE said the discount rate was also raised by 200 basis points to 19.25%, adding that annual headline inflation in May 2017 fell for the first time since October 2016 to record 29.7% compared to 31.5% in the preceding month. “The drop was partly due to a favorable base effect stemming from the exchange rate depreciation in March 2016 that strongly impacted prices in May 2016,” the statement read. Egypt on Thursday announced a new increase in electricity prices ranging from 18 to 42%, based on consumption.
