According to Amwal Al Ghad, Egypt’s central bank has on Thursday decided to hike interest rates by 3 percent to contain inflationary pressures which is consistent with achieving price stability over the medium term.

The central bank’s Monetary Policy Committee (MPC) has raised the overnight deposit rate, overnight lending rate, and the rate of the main operation by 300 basis points to 16.25 percent, 17.25 percent, and 16.75 percent, respectively, the bank said in a statement.

The discount rate was also raised by 300 basis points to 16.75 percent.

“…, the MPC decided to raise key policy rates by 300 bps to contain inflationary pressures and to steer annual headline inflation rates towards its upcoming targeted levels. The committee notes that the future path of inflation remains a function of the cumulative tightening in its stance to date and the lag with which monetary policy tools operate.” the MPC statement read.

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