CBE maintains key policy rates
Updated 9/5/2024 7:43:00 PM
Arab Finance
The overnight deposit rate, overnight lending rate, and the rate of the main operation will remain at 27.25%, 28.25%, and 27.75%, respectively.
Additionally, the discount rate stays at 27.75%.
This decision reflects the MPC's assessment of recent global and domestic economic developments since its last meeting.
Internationally, the CBE noted that the economic growth is stable but slightly below pre-pandemic levels.
Tightening monetary policies in various economies have led to a global decline in inflation, with some central banks even reducing interest rates as inflation nears target levels.
The MPC’s choice to maintain Egypt's current rates comes amid ongoing geopolitical uncertainties and fluctuating energy prices.
Despite a minor decrease in energy prices, the overall outlook for commodity prices remains uncertain.
Leading indicators suggest a gradual recovery in real GDP growth is expected starting in the current fiscal year (FY) 2024/25, following a slowdown in the elapsed FY 2023/2024.
The MPC emphasized that the current policy rates are appropriate for maintaining a tight monetary stance until a significant and sustained decrease in inflation is achieved.
Future adjustments will be guided by inflation expectations and the impact of previous policy decisions.
The MPC remains committed to using all available tools to ensure continued progress towards price stability over the medium term.
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