Egypt’s central bank has raised its benchmark interest rates by 100 basis points—its first hike since March 2024—as authorities respond to currency pressures and global economic uncertainty.

The Central Bank of Egypt lifted its overnight deposit rate from 19% to 20% and its lending rate from 20% to 21%. The move defied expectations among analysts surveyed by Reuters, who had anticipated a sixth consecutive meeting with no change to borrowing costs.

The decision follows the Egyptian pound’s slide to a record low of 56 pounds per US dollar. Although annual urban inflation eased to 13.9% in September from 14.5% in August, the central bank said external uncertainties warranted tighter monetary conditions.