Egypt's central bank said on Friday it raised interest rates by 50 basis points, its sixth increase this year, citing the need to curb inflation expectations.

It raised overnight deposit rates to 11.5 percent, the overnight lending rate to 13.5 percent and the discount rate to 11.5 percent.

'Having weighed both the international and domestic information available, the (central bank) judges that an additional rate hike is needed today to contain inflation expectations.'

The bank said the pace of acceleration in some food prices was easing but non-food inflation remains high.

The international food price shock may be waning as prices come down for food products such as wheat, but international developments may not be fully reflected locally, it said.

'The impact on domestic food inflation might not be fully reflected given downward price rigidities in domestic markets,' the central bank said.

Inflation in urban parts of Egypt surged to 23.6 percent in the year to August, a 16-year high that beat market forecasts.-Reuters