Egypt's Banque Misr raised interest rates on Monday for account holders in response to the central bank's last week decision to raise its key rates to reach the highest in about ten years.

Banque Misr, the second largest state-owned bank, raised rates on deposits 1 percent and on saving accounts 0.75 percent, Chairman Mohamed Eletreby told Ahram Online in a text message.

Earlier on Monday, National Bank of Egypt (NBE) preceded Misr in the decision to raise the rates on deposits by 0.75 percent and on saving accounts by 1 percent.

Last week, the central bank raised interest rates by 100 basis points after core inflation rate hit a seven-year high in May.