The Central Bank of Egypt (CBE) announced the raising of interest rates on overnight deposits and loans by two percent on Thursday, 19 May.
According to its official statement, the Monetary Policy Committee (MPC) decided to raise the CBE’s overnight deposit rate, overnight lending rate, and the rate of the main operation by 200 basis points to 11.25 percent, 12.25 percent, and 11.75 percent, respectively.
Public speculation had been spreading recently expecting interest rates to be raised by up to two percent.
“The MPC decided that raising policy rates is necessary to contain inflationary pressures which is consistent with achieving price stability over the medium term,” the statement said.
This marks the third time that the MPC of the CBE convenes in 2022, and the second time since the start of the Russian-Ukrainian conflict.