BREAKING: Egypt central bank hikes interest rates 300 basis points
A man walks past an exchange bureau advertisement showing images of the U.S dollar in Cairo, Egypt, February 21, 2016. REUTERS
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BY REUTERS

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.

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