Egypt's central bank seen raising interest rates by 200 bps

The Central Bank of Egypt (CBE) will raise its overnight interest rates by 200 basis points on Thursday as it tries to quell soaring inflation after a sharp devaluation of the currency, a Reuters poll predicted on Tuesday.

The median forecast in a poll of 12 analysts is for the bank to raise its deposit rate to 15.25% and its lending rate to 16.25% at its regular monetary policy committee meeting.

The central bank raised rates by 200 bps at a surprise meeting on Oct. 27. On the same day, it allowed the currency to weaken by 14.5% and announced it had reached a staff-level agreement on a $3 billion financial support package with the International Monetary Fund.