CBE holds interest rates steady

Updated 5/23/2024 7:19:00 PM
CBE holds interest rates steady

Arab Finance: The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) maintained interest rates at its meeting on May 23rd, according to a press release.

The overnight deposit rate and the overnight lending rate remained the same at 27.25% and 28.25%, respectively.

Meanwhile, the rate of the main operation was kept unchanged at 27.75% and the discount rate remained the same at 27.75%.

As for Egypt’s real gross domestic product (GDP), the CBE highlighted that it is expected to soften in fiscal year (FY) 2024/2025 and to increase as of FY2024/2025.

Moreover, the central bank also forecasts inflation rates to moderate in 2024, with inflationary pressures to become less severe.

Inflation is also expected to drop significantly in the first half of 2025, affected by the recent monetary policy tightening, the CBE indicated.

On March 6th, the CBE’s MPC raised interest rates by 600 basis points (bps) at a special meeting.

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