CBE expected to keep interest rates on hold for eighth time in a row
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) is expected to keep interest rates on hold during its seventh periodic meeting this year, on Thursday.
The MPC periodic meeting comes amid strong market expectations that it will keep Egypt’s interest rates unchanged for the eighth time in a row, despite the rise in the inflation rate in the recent period, and there are expectations of a further rise in the coming period.
The MPC decided to maintain interest rates, for the seventh consecutive time, at its meeting on 16 September. Overnight deposit and lending rates remain unchanged at 8.25% and 9.25% respectively, while main operation and discount rates remain at 8.75%. These are the levels reached in November 2019.
At the time the committee said that the basic interest rates at the Central Bank of Egypt are appropriate at present, and are consistent with achieving the target inflation rate of 7% (± 2 percentage points) on average during the fourth quarter of 2022 and price stability in the medium term.