Arab Finance: The Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) decided to keep its key policy rates unchanged during its meeting today, July 18th, as per a statement.

The overnight deposit rate remains at 27.25%, the overnight lending rate at 28.25%, and the rate of the main operation at 27.75%.

The discount rate is also held steady at 27.75%.

The CBE expects a significant reduction in inflation during the first half (H1) of 2025, influenced by the cumulative effects of monetary tightening.

However, potential risks such as geopolitical tensions, adverse climate conditions, and unplanned fiscal measures could impact this forecast.

The MPC believes that the current monetary policy is appropriate for supporting ongoing inflation moderation.

The CBE has reaffirmed its commitment to maintaining price stability and sustainable economic development. 

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