CBE holds key interest rates steady amid global, domestic uncertainties
Updated 11/21/2024 6:28:00 PM
Arab Finance: The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) has decided to keep the country’s key policy rates unchanged during its meeting on November 21st, as per a statement.
The overnight deposit rate, overnight lending rate, and the rate of the main operation remain at 27.25%, 28.25%, and 27.75%, respectively.
The discount rate is also steady at 27.75%.
This decision reflects an analysis of both global and domestic economic conditions since the previous MPC meeting.
Globally, monetary tightening in advanced and emerging economies has contributed to a decline in inflation.
Some central banks have begun reducing policy rates, but many continue to adopt restrictive approaches to manage inflationary pressures.
The global economic outlook shows stability but is subject to risks, including the effects of tight monetary policies on growth, geopolitical tensions, and the potential for increased trade barriers.
While forecasts for global commodity prices, particularly energy, have moderated, risks such as supply disruptions and adverse weather conditions could still impact prices.
Domestically, indicators suggest that Egypt's real GDP growth in the third quarter (Q3) of 2024 exceeded the 2.4% recorded in Q2.
However, economic activity remains below potential, supporting a gradual decline in inflation.
Economic growth is projected to recover in the fiscal year (FY) 2024/2025, the CBE stated.
Inflation is expected to stay near current levels through the end of 2024, with potential easing starting in Q1 of 2025.
The MPC considers the current monetary policy stance suitable for the prevailing economic conditions.
It will continue to monitor economic data and make adjustments as needed to address inflationary trends and maintain economic stability.
Related News
