CAIRO (Reuters) – Egyptian Bank Al Ahly raised interest rates for account holders, an official at the bank said on Monday, becoming the first state-owned commercial lender to react to last week’s increase in benchmark borrowing costs.

Al Ahly – National Bank of Egypt’s retail banking arm – raised rates on deposits by 0.75 percent and on saving accounts by 1 percent, the official told Reuters.

Two of Al Ahly’s main competitors, Banque Misr and Commercial International Bank, are also expected to review depositor rates on Monday, officials at both banks said.

On Thursday, the central bank raised benchmark rates by 100 basis points to their highest levels in years, accelerating efforts to rein in surging inflation and ease downward pressure on the Egyptian pound.

(Reporting by Ehab Farouk; Writing by Amina Ismail; editing by John Stonestreet)