Egypt’s central bank hikes key interest rates by 300 basis points, floats pound currency

Egypt’s central bank announced Thursday it had hiked interest rates by 300 basis points in a move to rebalance currency markets following free floating local pound.

Bankers told Reuters they had been informed that the central bank would set an initial guidance rate of 13 pounds to the dollar at a sale at 1300 local time (11:00 GMT) and allow free bids and offers while the market converges on a real price.

The central bank also said in a statement that it would abolish the priority list for imports and phase out monetary financing of the budget deficit over the coming months.