The Central Bank Of Egypt increased interest rates by two percent (200 bps) which means that the overnight deposit rate, overnight lending rate, and the rate of the main operation were raised to 18.25 percent, 19.25 percent, and 18.75 percent respectively. This is all part of an effort by the Central Bank to lower inflation rates to specific target levels.
In an official statement, CBE said that these efforts are “not only to contain demand side pressures as mentioned above, but also to avoid broad and persistent inflationary effects that could emanate from the supply shocks, with the aim of anchoring inflation expectations.”
Egypt is currently facing a high wave of inflation, with gas and food import prices at an all-time high. Just this February, the inflation rate reached 32.9 percent, the highest it’s ever gotten in more than five years. With the new hike in interest rates, the Central Bank hopes to reduce inflation rates by seven percent by 2024.
WE SAID THIS: Don’t Miss…The Central Bank Of Egypt Announces Contactless Payment Through Mobile Apps