The Central Bank of Egypt raised the overnight deposit and lending return rate, and the central bank’s main operation rate, by 300 basis points, to 16.25%, 17.25%, and 16.75%, respectively.
Sharjah 24 – WAM:
The Monetary Policy Committee of the Central Bank of Egypt decided, in its meeting, on Thursday, to raise the overnight deposit and lending return rate, and the central bank’s main operation rate, by 300 basis points, to 16.25%, 17.25%, and 16.75%, respectively.
The Central Bank of Egypt added, in a statement on Thursday, that it decided to raise the credit and discount rate by 300 basis points, to reach 16.75%.
The Central Bank attributed its decision to raise the basic interest rates to contain inflationary pressures and achieve targeted inflation rates, stressing that the future path of inflation rates depends on the cumulative increases in interest rates to date, which takes time to affect inflation rates.
The Central Bank stated that the Bank’s Monetary Policy Committee is closely following global and local economic developments, and will continue to use all its monetary tools in order to control inflation expectations, contain inflationary pressures from the demand side and the secondary effects of supply shocks that may lead to inflation deviating from its target rates.
