In its meeting held on Thursday, the Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided to raise the main interest rate indicator by 50 basis points (bps).
This in turn boosts the overnight deposit rate, overnight lending rate, and discount rate to 9.25%, 10.25%, and 9.75% respectively.
The MPC noted that raising the interest rate makes it possible to confront the inflationary pressures and maintaining inflation rates in light of the latest inflation outturn and potential risks surrounding the state’s GDP.
The committee added that it will continue to closely monitor all economic developments, particularly the fiscal policy and its effect on the inflation outlook. Further, the committee said it will not hesitate to adjust the key CBE rates to ensure price stability over the medium-term.