Egypt : Central bank hikes interest rates 300 basis points

CAIRO Nov 3 Egypt’s central bank said on Thursday it had floated its pound currency and hiked interest rates by 300 basis points in a move to rebalance currency markets.

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 (1100 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.