CBE Raises Interest Rates by 100 bp

 the Monetary Policy Committee of the Central Bank of Egypt has decided, In its meeting held on Thursday, August 3rd, 2023, to increase the deposit and lending rates for overnight transactions, as well as the main operation rate of CBE, by 100 basis points each(bp).

The new rates stand at 19.25%, 20.25%, and 19.75%, respectively. Additionally, the credit and discount rates have also been raised by 100 bP, reaching 19.75%.

The committee emphasized that the path of the key interest rates depends on the expected inflation rates rather than the prevailing inflation rates.

It further stated its commitment

to monitoring economic developments and forecasts in the upcoming period, and it will not hesitate to utilize all available monetary policy tools to maintain the restrictive monetary conditions in order to achieve the targeted inflation rates of 7% (± 2 percentage points) on average during Q4 2024, and 5% (± 2 percentage points) on average during Q4 2026.