Egypt's central bank raised its key interest rates by 100 basis points at its monetary policy meeting on Thursday, following a jump in inflation last month.

The Monetary Policy Committee (MPC) raised the overnight deposit rate to 11.75 per cent from 10.75 per cent and the overnight lending rate was raised to 12.75 per cent from 11.75 per cent, according to a statement.

Urban consumer price inflation rose sharply to 12.3 per cent in May. Core inflation, which excludes items with volatile prices, such as fruit and vegetables, rose to a yearly 12.23 per cent last month, from 9.51 per cent in April.

Egypt has struggled to revive growth and faced political and economic instability since a 2011 uprising ended the 30-year rule of Hosni Mubarak.

The country has faced an acute foreign currency shortage after the uprising drove away tourists and foreign investors. It devalued the pound to 8.78 per dollar in March and hiked interest rates by 150 basis points days later to control inflation, but prices have continued to rise.

President Abdel Fattah al-Sisi is under increasing pressure to revive the economy and keep prices under control. – Reuters